Exhibit 99.3

 

 

Dr. Reddy’s Laboratories Ltd.

8-2-337, Road No. 3, Banjara Hills,

Hyderabad - 500 034, Telangana, India.

CIN : L85195TG1984PLC004507

 

Tel      : +91 40 4900 2900

Fax     : +91 40 4900 2999

Email : mail@drreddys.com

www.drreddys.com

 

DR. REDDY'S LABORATORIES LIMITED

Unaudited consolidated financial results of Dr. Reddy's Laboratories Limited and its subsidiaries for the quarter ended 30 June 2025 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)

 

All amounts in Indian Rupees millions

      Quarter ended   Year ended 
Sl. No.  Particulars  30.06.2025   31.03.2025   30.06.2024   31.03.2025 
      (Unaudited)   (Audited)   (Unaudited)   (Audited) 
1  Revenues   85,452    85,060    76,727    325,535 
2  Cost of revenues   36,825    37,797    30,383    135,107 
3  Gross profit (1 - 2)   48,627    47,263    46,344    190,428 
4  Selling, general and administrative expenses   25,647    24,055    22,691    93,870 
5  Research and development expenses   6,244    7,258    6,193    27,380 
6  Impairment of non-current assets, net   -    768    5    1,693 
7  Other income, net   (739)   (2,465)   (470)   (4,358)
   Total operating expenses   31,152    29,616    28,419    118,585 
8  Results from operating activities
[(3) - (4 + 5 + 6 + 7)]		   17,475    17,647    17,925    71,843 
   Finance income   2,400    3,008    1,435    7,553 
   Finance expense   (830)   (656)   (598)   (2,829)
9  Finance income, net   1,570    2,352    837    4,724 
10  Share of profit of equity accounted investees, net of tax   2    55    59    217 
11  Profit before tax (8 + 9 + 10)   19,047    20,054    18,821    76,784 
12  Tax expense, net   4,951    4,181    4,901    19,539 
13  Profit for the period/year (11 - 12)   14,096    15,873    13,920    57,245 
                        
   Attributable to:                    
   Equity holders of the parent company   14,178    15,939    13,920    56,544 
   Non-controlling interests   (82)   (66)   -    701 
                        
14  Earnings per equity share attributable to equity shareholders of parent                    
   Basic earnings per share of Re.1/- each   17.04    19.13    16.72    67.88 
   Diluted earnings per share of Re.1/- each   17.02    19.11    16.69    67.78 
       (Not annualised)    (Not annualised)    (Not annualised)      

 

 

 

 

 

 

 

 

Segment information  All amounts in Indian Rupees millions

 

      Quarter ended   Year ended 
Sl. No.  Particulars  30.06.2025   31.03.2025   30.06.2024   31.03.2025 
      (Unaudited)   (Audited)   (Unaudited)   (Audited) 
   Segment wise revenue and results:                    
1  Segment revenue:                    
   a) Global Generics   75,620    75,365    68,858    289,552 
   b) Pharmaceutical Services and Active Ingredients   9,709    11,675    10,309    43,235 
   c) Others   1,651    132    212    2,137 
   Total   86,980    87,172    79,379    334,924 
   Less: Inter-segment revenues   1,528    2,112    2,652    9,389 
   Net revenues   85,452    85,060    76,727    325,535 
                        
2  Segment results:                    
   Gross profit from each segment                    
   a) Global Generics   46,086    44,707    44,518    179,606 
   b) Pharmaceutical Services and Active Ingredients   1,082    2,518    1,768    9,157 
   c) Others   1,459    38    58    1,665 
   Total   48,627    47,263    46,344    190,428 
   Less: Selling and other un-allocable expenditure, net of other income   29,580    27,209    27,523    113,644 
   Total profit before tax   19,047    20,054    18,821    76,784 

 

Global Generics segment includes operations of Biologics business. Inter-segment revenues represent sale from Pharmaceutical Services and Active Ingredients to Global Generics and Others at cost.

 

Segmental capital employed

As certain assets of the Company including manufacturing facilities, development facilities, treasury assets and liabilities are often deployed interchangeably across segments, it is impractical to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above table.

 

Notes:

1 The above Statement of unaudited consolidated financial results of Dr. Reddy’s Laboratories Limited (the “parent company”), together with its subsidiaries (collectively, the “Company”), joint ventures and associates, which have been prepared in accordance with recognition and measurement principles of IAS 34 as issued by the International Accounting Standards Board (IASB), and presented as per the format of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, and were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meetings held on 23 July 2025. The Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.
   
2

"Impairment of non-current assets, net" for the year ended 31 March 2025 primarily includes:

a. Impairment of intangibles pertaining to acquisition from Mayne:

-an amount of Rs.907 million towards Haloette® (a generic equivalent to Nuvaring®), a product-related intangible, due to constraints on procurement of the underlying product from its contract manufacturer, resulting in a lower recoverable value compared to the carrying value.

-an amount of Rs.270 million pertaining to impairment of certain product related intangibles, due to adverse market conditions resulting in lower recoverable value compared to the carrying value.

b. Other impairments:

-an impairment loss of Rs. 288 million consequent to adverse market conditions with respect to certain product related intangibles forming part of the Company’s global generic business in India and Europe.
The above impairment charge pertains to the Company’s Global Generics segment.

   
3

“Other income, net” for the quarter and year ended 31 March 2025 includes cumulative amount of foreign exchange gain of Rs. 1,551 million, reclassified from the foreign currency translation reserve and a loss of Rs. 52 million due to turnaround fees paid upon divestment of the membership interest in the subsidiary “Dr. Reddy’s Laboratories Louisiana LLC”.

This transaction pertains to the Company's Global Generics segment.

 

 

 

 

 

 

 

 

4

Business purchase agreement with Haleon:

Effective 30 September 2024, the Company acquired global Nicotine Replacement Therapy business from Haleon UK Enterprises Limited (“Haleon”), including brands in lozenge, patch, spray, and gum formats sold in markets outside the United States. This transaction included transfer of intellectual property, employees, manufacturing contracts, and product licenses. The marketing authorisations will transition gradually into the Company in a phased approach between April 2025 and February 2026. During the transition period, Haleon group provides distribution and related services in the markets, facilitating successful integration of the business across various geographies into the Company.

 

During the three months ended 30 June 2025, the transfer of local marketing authorizations were completed for the United Kingdom and Nordic countries on the respective cut over dates.

   
5

The Board of Directors of the Company, in their meeting on 27 July 2024, approved the sub-division/ split of each equity share having a face value of Rupees five each, fully paid-up, into five equity shares having a face value of Rupee One each, fully paid-up (the “stock split”), with shareholder approval obtained via postal ballot on 12 September 2024. Consequently, w.e.f. 28 October 2024, the authorized share capital, the paid-up share capital, and the treasury shares were adjusted accordingly. As on 30 June 2025, the closing number of fully paid-up shares and treasury shares were 834,581,775 and 2,210,925 respectively.

 

Further, each American Depositary Share (ADS) of the Company will continue to represent one underlying equity share as at present and, therefore, the number of ADSs held by an American Depositary Receipt(ADR) holder would consequently increase in proportion to the increase in number of equity shares.

 

The impact of the stock split has been considered for all periods presented, and the EPS (both basic and diluted) for the three months ended 30 June 2024 has been restated based on the revised face value of Rupee One per share, in accordance with IAS 33 – 'Earnings per Share', and rounded off to the nearest decimals.

   
 6

The Company received an anonymous complaint in September 2020, alleging that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S. anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On 06 July 2021, the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC.

 

The Company has continued to engage with the SEC and DOJ, including through submissions and presentations regarding the initial complaint and additional complaints relating to other markets, and in relation to its Global Compliance Framework, which includes enhancement initiatives undertaken by the Company, and the Company is complying with its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions and can also lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this time.

   
7 The Company considered the uncertainties relating to the escalation of conflict in the middle east, and duration of military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, the Company expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue to closely monitor any material changes to future economic conditions.
   
8 The figures for the quarter ended 31 March 2025 are the balancing figures between audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the relevant financial year, which were subject to limited review.

  

   

By order of the Board

For Dr. Reddy’s Laboratories Limited

 
   
 
 
 
 
 
 
 

Place: Hyderabad

Date: 23 July 2025

G V Prasad

Co-Chairman & Managing Director