Exhibit 99.4

 

THE SKYVIEW 10

18th Floor, “NORTH LOBBY”

Survey No. 83/1, Raidurgam

Hyderabad - 500 032, India

Tel: +91 40 6141 6000

 

Independent Auditor’s Review Report on the Quarterly Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

 

Review Report to

The Board of Directors

Dr. Reddy’s Laboratories Limited

 

1.We have reviewed the accompanying statement of unaudited consolidated financial results of Dr. Reddy’s Laboratories Limited (the “Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its associates and joint ventures for the quarter ended 30 June 2025 (the “Statement”), attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).

 

2.The Holding Company’s Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) “Interim Financial Reporting” prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with the Listing Regulations. The Statement has been approved by the Holding Company’s Board of Directors . Our responsibility is to express a conclusion on the Statement based on our review.

 

3.We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

We also performed procedures in accordance with the Master Circular issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.

 

4.The Statement includes the results of the following entities:

 

Holding Company:

 

Dr. Reddy’s Laboratories Limited

 

Subsidiaries

 

1.Aurigene Discovery Technologies (Malaysia) Sdn. Bhd.
2.Aurigene Oncology Limited (Formerly, Aurigene Discovery Technologies Limited)
3.Aurigene Pharmaceutical Services Limited
4.beta Institut gemeinnützige GmbH
5.betapharm Arzneimittel GmbH
6.Cheminor Investments Limited

 

 

S.R. Batliboi & Associates LLP, a Limited Liability Partnership with LLP Identity No. AAB-4295

Regd. Office: 22, Camac Street, Block ‘B’, 3rd Floor, Kolkata-700 016

 

  

 

  

 

7.Dr. Reddy’s Farmaceutica Do Brasil Ltda.
8.Dr. Reddy’s Laboratories (EU) Limited
9.Dr. Reddy’s Laboratories (Proprietary) Limited
10.Dr. Reddy’s Laboratories (UK) Limited
11.Dr. Reddy’s Laboratories Canada, Inc.
12.Dr. Reddy’s Laboratories Chile SPA.
13.Dr. Reddy’s Laboratories Inc.
14.Dr. Reddy’s Laboratories Japan KK
15.Dr. Reddy’s Laboratories Kazakhstan LLP
16.Dr. Reddy’s Laboratories Malaysia Sdn. Bhd.
17.Dr. Reddy’s Laboratories New York, LLC
18.Dr. Reddy’s Laboratories Philippines Inc.
19.Dr. Reddy’s Laboratories Romania Srl
20.Dr. Reddy’s Laboratories SA
21.Dr. Reddy’s Laboratories Taiwan Limited
22.Dr. Reddy’s Laboratories (Thailand) Limited
23.Dr. Reddy’s Laboratories LLC, Ukraine
24.Dr. Reddy’s New Zealand Limited.
25.Dr. Reddy’s Srl
26.Dr. Reddy’s Bio-Sciences Limited
27.Dr. Reddy’s Laboratories (Australia) Pty. Limited
28.Dr. Reddy’s Laboratories SAS
29.Dr. Reddy’s Netherlands B.V. (Formerly Dr. Reddy’s Research and Development B.V.)
30.Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited
31.DRL Impex Limited
32.Dr. Reddy’s Formulations Limited
33.Idea2Enterprises (India) Pvt. Limited
34.Imperial Owners and Land Possessions Private Limited (Formerly, Imperial Credit Private Limited)
35.Industrias Quimicas Falcon de Mexico, S.A. de CV
36.Lacock Holdings Limited
37.Dr. Reddy’s Laboratories LLC, Russia
38.Promius Pharma LLC
39.Reddy Holding GmbH
40.Reddy Netherlands B.V.
41.Reddy Pharma Iberia SAU
42.Reddy Pharma Italia S.R.L.
43.Reddy Pharma SAS
44.Svaas Wellness Limited
45.Nimbus Health GmbH
46.Dr. Reddy’s Laboratories Jamaica Limited
47.Dr. Reddy’s and Nestle Health Science Limited (Formerly, Dr. Reddy’s Nutraceuticals Limited)
48.Northstar Switzerland SARL
49.North Star OpCo Limited
50.North Star Sweden AB
51.Dr. Reddy's Denmark ApS 
52.Dr. Reddy's Finland Oy  

 

 

  

 

 

 

53.Dr. Reddy’s Laboratories (Vietnam) Company Limited (incorporated on May 09, 2025)

 

Associates

1.O2 Renewable Energy IX Private Limited
2.Clean Renewable Energy KK 2A Private Limited

 

Joint Venture

1.DRES Energy Private Limited
2.Kunshan Rotam Reddy Pharmaceutical Co. Limited (Including Kunshan Rotam Reddy Medicine Co., Ltd.)

 

Other Consolidating Entities

1.Dr. Reddy’s Employees ESOS Trust
2.Cheminor Employees Welfare Trust
3.Dr. Reddy’s Research Foundation

 

5.Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with recognition and measurement principles laid down in the aforesaid Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

 

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm registration number: 101049W/E300004

 

 

per Shankar Srinivasan

Partner

Membership No.: 213271

 

UDIN: 25213271BMISTI3600

 

Place: Hyderabad

Date: July 23, 2025

 

  

 

 

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
Web: www.drreddys.com

  

DR. REDDY'S LABORATORIES LIMITED

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2025

 

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   Revenue from operations                                
    a) Sales     82,666       82,105       75,396       316,320  
    b) License fees and service income     2,786       2,955       1,331       9,215  
    c) Other operating income     269       224       234       904  
    Total revenue from operations     85,721       85,284       76,961       326,439  
                                     
2   Other income     2,903       5,221       1,872       10,973  
                                     
3   Total income (1 + 2)     88,624       90,505       78,833       337,412  
                                     
4   Expenses                                
    a) Cost of materials consumed     20,358       17,165       12,272       56,835  
    b) Purchase of stock-in-trade     12,159       11,275       13,801       48,411  
    c) Changes in inventories of finished goods, work-in-progress  and stock-in-trade     (4,442 )     60       (4,256 )     (5,447 )
    d) Employee benefits expense     15,035       14,006       14,137       55,800  
    e) Depreciation and amortisation expense     4,761       4,547       3,806       17,037  
    f) Impairment of non-current assets, net     -       768       5       1,693  
    g) Finance costs     830       656       598       2,829  
    h) Other expenses     20,875       22,031       19,703       83,676  
    Total expenses     69,576       70,508       60,066       260,834  
                                     
5   Profit before tax and before share of equity accounted investees (3 - 4)     19,048       19,997       18,767       76,578  
                                     
6   Share of profit of equity accounted investees, net of tax     2       55       59       217  
                                     
7   Profit before tax (5 + 6)     19,050       20,052       18,826       76,795  
                                     
8   Tax expense/(benefit):                                
    a) Current tax     10,261       4,323       5,215       22,581  
    b) Deferred tax     (5,310 )     (138 )     (313 )     (3,038 )
                                     
9   Net profit after taxes and share of profit of associates (7 - 8)     14,099       15,867       13,924       57,252  
                                     
10   Net profit after taxes attributable to                                
    a) Equity shareholders of the parent company     14,181       15,933       13,924       56,551  
    b) Non-controlling interests     (82 )     (66 )     -       701  
                                     
11   Other comprehensive income / (loss)                                
    a) (i) Items that will not be reclassified subsequently to profit or loss     5       (117 )     (91 )     (293 )
    (ii) Income tax relating to items that will not be reclassified  to profit or loss     -       24       -       24  
    b) (i) Items that will be reclassified subsequently to profit or loss     2,077       1,425       115       2,376  
    (ii) Income tax relating to items that will be reclassified  to profit or loss     (33 )     (238 )     (6 )     (58 )
    Total other comprehensive income / (loss)     2,049       1,094       18       2,049  
                                     
12   Total comprehensive income (9 + 11)     16,148       16,961       13,942       59,301  
                                     
13   Total comprehensive income attributable to                                
    a) Equity shareholders of the parent company     16,230       17,027       13,942       58,600  
    b) Non-controlling interest     (82 )     (66 )     -       701  
                                     
14   Paid-up equity share capital (face value Re. 1/- each)     835       834       834       834  
                                     
15   Other equity     -       -       -       334,662  
                                     
16   Earnings per equity share attributable to equity shareholders of parent (face value Re. 1/- each)                                
    Basic     17.04       19.12       16.72       67.89  
    Diluted     17.02       19.10       16.70       67.79  
          (Not annualised)       (Not annualised)       (Not annualised)          

  

See accompanying notes to the financial results

 

 

  

 

  

 

DR. REDDY'S LABORATORIES LIMITED

 

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   75,732    75,432    68,929    289,810 
   b) Pharmaceutical Services and Active Ingredients   9,874    11,819    10,472    43,868 
   c) Others   1,643    145    212    2,150 
   Total   87,249    87,396    79,613    335,828 
   Less: Inter-segment revenue   1,528    2,112    2,652    9,389 
   Total revenue from operations   85,721    85,284    76,961    326,439 
                        
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   1,087    2,526    1,772    9,178 
   c) Others   1,459    40    58    1,665 
   Total   48,632    47,273    46,348    190,449 
   Less: Selling and other un-allocable expenditure, net   29,582    27,221    27,522    113,654 
   Total profit before tax   19,050    20,052    18,826    76,795 

 

Global Generics includes operations of Biologics business. Inter-segment revenue represents sales 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 and 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:

1The 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 Indian Accounting Standards ("Ind AS") prescribed under section 133 of Companies Act,2013 ("the Act") read with relevant rules issued thereunder, other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India ("SEBI") were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meeting held on 23 July 2025. The Statutory Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.

 

2“Other income” for the quarter and year ended 31 March 2025 includes cumulative amount of foreign exchange gain of Rs.1,493 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.

 

3"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.

 

 

  

 

 

 

DR. REDDY'S LABORATORIES LIMITED

 

4Business 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.

 

5The 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 Ind AS 33 – 'Earnings per Share', and rounded off to the nearest decimals.

 

6The 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.

 

7The 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.

 

8The 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 G V Prasad
Date: 23 July 2025 Co-Chairman & Managing Director