Financial Results

Q3 FY21

Jan 29, 2021

1 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC
 Safe Harbor Statement
This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-looking statements are all statements
that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of
historical fact, including, but not limited to, those that are identified by the use of words such as “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”,
“predicts”, “projects” and similar expressions. Risks and uncertainties that could affect us include, without limitation:
 General economic and business conditions in India and other key global markets in which we operate;
 The ability to successfully implement our strategy, our research and development efforts, growth & expansion plans and technological changes;
 Changes in the value of the Rupee and other currency changes;
 Changes in the Indian and international interest rates;
 Allocations of funds by the Governments in our key global markets;
 Changes in laws and regulations that apply to our customers, suppliers, and the pharmaceutical industry;
 Increasing competition in and the conditions of our customers, suppliers and the pharmaceutical industry; and
 Changes in political conditions in India and in our key global markets.
Should one or more of such risks and uncertainties materialize, or should any underlying assumption prove incorrect, actual outcomes may vary materially from those
indicated in the applicable forward-looking statements.
For more detailed information on the risks and uncertainties associated with the Company’s business activities, please see the company’s annual report filed in Form 20-F
with the US SEC for the fiscal year ended March 31, 2020 and quarterly financial statements filed in Form 6-K with the US SEC for the quarters ended Dec 31, 2019, Jun
30, 2020, Sep 30, 2020 and our other filings with US SEC. Any forward-looking statement or information contained in this presentation speaks only as of the date of the
statement. We are not required to update any such statement or information to either reflect events or circumstances that occur after the date the statement or
information is made or to account for unanticipated events.

2 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC

 Financial Highlights Rs. Cr

Healthy revenue growth with good EBITDA margins

Q3 FY21 YoY Gr% QoQ Gr%

Revenues 4,930 12% 1%

EBITDA 1,185 10% -6%

PBT^ 284 5.8% of Revenues

PAT 20 0.4% of Revenues

^Excluding impairment charge, PBT is Rs. 882 Cr i.e. 17.9% of Revenues

3 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC

 P&L Metrics - Quarterly Rs. Cr

Gross margin SG&A Expenses R&D Expenses

YoY Inc QoQ Inc YoY Inc QoQ Dec

14% 10% 1,439 4% 6%
54.1% 53.9% 53.8% 1,311
1,267

436 411
395

% to 28.9% 26.8% 29.2% % to 9.0% 8.9% 8.3%

Sales Sales

Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3
FY20 FY21 FY21 FY20 FY21 FY21 FY20 FY21 FY21

4 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC

North America – YoY growth driven by new product launches
Revenues
 Revenue:
Q3 FY21 Rs. 1,739 cr o YoY – benefited from new products launches, increase in volumes and
favorable forex, which was partially offset by price erosion
YoY Gr QoQ Dc
9% 5% o QoQ – decline primarily due to price erosion in some of the molecules
 New launches:
o 4 new products - Cinacalcet Tablets, Sapropterin Dihydrochloride Tablets
and Succinylcholine Chloride Injection in the US and Daptomycin Injection
in Canada
o Re-launched OTC – Famotidine in US
 US filing update:
o ANDAs filed – 2
o Cumulative pending for approval - 89 (87 ANDAs + 2 NDAs)
• 48 Para IV filings
• 24 expected to have FTF status

5 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC

 India – YoY growth driven by new products & portfolio acquired from Wockhardt
Revenues

Q3 FY21 Rs. 959 cr  YoY revenue growth is primarily due to acquired portfolio from Wockhardt and

YoY Gr QoQ Gr
new products contribution including Remdesivir (Redyx)
26% 5%
 QoQ revenue growth driven by improvement in the market conditions

 Redyx featured among IPM - Top 20

IQVIA growth rates

Dec 2020 FTM MQT MAT

IPM 11.9% 8.3% 4.4%
Dr. Reddy’s 18.2% 13.5% 1.5%
- We were ranked 9th on FTM basis and 11th on MQT & MAT basis,
an improvement by a rank

FTM: For the month | MQT: Moving quarterly total | MAT: Moving annual total

6 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC

Emerging Markets – Growth driven by volume traction & new product launches
Revenues
₹ Cr

Q3 FY21 Rs. 962 cr Region Q3 FY21 YoY Gr QoQ Gr

Russia 453 -8% 14%
YoY Gr QoQ Gr CISR 215 18% 8%
5% 11%
RoW 295 20% 10%

EM 962 5% 11%

Russia:

• YoY growth impacted due to weakening Ruble (constant currency growth at 4%)

• QoQ growth supported by improvement in market conditions

CISR & RoW: Growth driven by base business as well as new product launches

7 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC

 Europe – Strong growth momentum continues
Revenues
₹ Cr
Region Q3 FY21 YoY Gr QoQ Gr
Q3 FY21 Rs. 414 cr
Germany 245 33% 7%

YoY Gr QoQ Gr UK/OL 88 0% 5%

34% 10% New Markets 81 116% 31%
Europe 414 34% 10%

• YoY & QoQ growth mainly driven by –

• New product launches

• Favourable forex movement

• Volume traction

• Offset partly by price erosion in the base business

8 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC

 PSAI – Sales impacted due to lower off-take
Revenues

Revenue:
Q3 FY21 Rs. 701 cr
• On a Year-on-year basis revenues were supported by new products and
YoY Gr QoQ Dc
1% 18% favorable forex rate, offset by lower volumes of a few products.

• On a sequential basis, decline was primarily on account of lower volumes of

certain products partially due to higher stocking-up during H1

 DMF Filings:

Q3 FY21
Global DMFs filed incl. in US 44
US DMFs 5

9 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC

 R&D, Capex & Cash flows
Q3 FY21
R&D expenses (Rs. Cr) Capex (Rs. Cr) Q2 FY21
% to Q1 FY21
sales 13.9% 12.9% 10.1% 8.8% 8.7%

1,245 687
1,955 1,826 411 1228 287
1,561 1,541 925
436 696
485 250
398 150
FY17 FY18 FY19 FY20 9M FY21 FY17 FY18 FY19 FY20 9M FY21

Free cash flow (Rs. Cr) Net Debt / Equity

1,673
94
2,165 2,313 655
0.25 0.24
794 605 925
0.09 -0.005
-0.03
FY17 FY18 FY19 FY20 9M FY21* Mar'17 Mar'18 Mar'19 Mar'20 Dec'20*
*Free Cash Flow before acquisition related payout of Rs. 1,551 cr to Wockhardt * Net cash surplus stood at Rs. 84 Cr as on December 31st, 2020
& Rs. 152 cr to Glenmark

10 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC

 Key Priorities

Sputnik-V
Achieve
Vaccine: Build healthy
market leading
Phase-III pipeline of
growth across
Clinical Trials products
businesses
& Launch

Drive
Continue with Execution of
innovation and
the Strategic
digitalization
productivity initiatives &
to fuel future
improvements moves
growth

11 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC

Covid-19 products: our portfolio covers full spectrum
Sputnik-V: Dr. Reddy’s and RDIF’s objective is to bring a safe and efficacious vaccine, that is
scientifically proven, for the people of India

• Phase-III trial in Russia: Large scale trial with 33,760 subjects dosed. Interim efficacy results on 22,000+
subjects show an efficacy of 91.4% with safety and immunogenicity criteria met

• India Clinical Trial: The Indian study is a bridging Phase II / III Trial on 1600 subjects for assessing
immunogenicity and safety. Phase-II successfully completed, met primary end points, safety established.
The Phase-III studies are ongoing.

• Global situation: Over 1.5 Million people have been vaccinated with Sputnik V. Emergency authorization in
12 countries in Europe, Asia, Latin America and Africa.

Remdesivir (Redyx): Became part of the IPM Top 20 brands, with market share of 24% in December.

Favipiravir (Avigan): Study on moderate to severe patients in hospitalized patients conducted in Kuwait
terminated. Study on mild to moderate patients in out-patient setting in North America continuing.

12 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC

 THANK YOU

13 | January 29, 2021 | Q3 FY21 Press Meet Classification | PUBLIC