Exhibit 99.5

 

 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 Standalone 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 standalone financial results of Dr. Reddy’s Laboratories Limited (the “Company”) for the quarter ended 30 June 2025 (the “Statement”), attached herewith, being submitted by the 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 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 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.

 

4.Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the 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: 25213271BMISTJ1312
 
Place: Hyderabad
Date: July 23, 2025 

 

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

 

 

 

  

  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

STATEMENT OF UNAUDITED STANDALONE 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   77,520    54,063    58,076    218,448 
   b) License fees and service income   367    1,400    163    12,020 
   c) Other operating income   208    166    173    686 
   Total revenue from operations   78,095    55,629    58,412    231,154 
                        
2  Other income   3,983    4,144    2,178    10,034 
   Total income (1 + 2)   82,078    59,773    60,590    241,188 
                        
 3  Expenses                    
   a) Cost of materials consumed   11,355    9,426    9,111    37,997 
   b) Purchase of stock-in-trade   6,638    5,347    7,403    24,399 
   c) Changes in inventories of finished goods, work-in-progress  and stock-in-trade   (2,129)   822    (1,261)   (1,739)
   d) Employee benefits expense   8,873    7,971    8,559    32,875 
   e) Depreciation and amortisation expense   2,798    2,645    2,498    10,394 
   f) Impairment of non current assets, net   -    1,036    -    1,036 
   g) Finance costs   192    311    71    1,099 
   h) Other expenses   14,988    16,597    15,070    62,768 
                        
   Total expenses   42,715    44,155    41,451    168,829 
                        
 4  Profit before tax (1 + 2 - 3)   39,363    15,618    19,139    72,359 
                        
 5  Tax expense / (benefit)                    
   a) Current tax   9,417    3,643    4,666    17,905 
   b) Deferred tax   334    (32)   301    960 
                        
 6  Net profit for the period / year (4 - 5)   29,612    12,007    14,172    53,494 
                        
 7  Other comprehensive income / (loss)                    
   a) (i) Items that will not be reclassified to profit or loss   -   (103)    -   (103) 
   (ii) Income tax relating to items that will not be reclassified  to profit or loss   -    26    -    26  
   b) (i) Items that will be reclassified to profit or loss   248    1,046    55    234 
   (ii) Income tax relating to items that will be reclassified to  profit or loss   (63)   (263)   (14)   (59)
   Total other comprehensive income / (loss)   185    706    41    98 
                        
 8  Total comprehensive income (6 + 7)   29,797    12,713    14,213    53,592 
                        
 9  Paid-up equity share capital (face value Re. 1/- each)   835    834    834    834 
                        
 10  Other equity                 287,732 
                        
 11  Earnings per equity share (face value Re. 1/- each)                    
                        
   Basic   35.59    14.41    17.02    64.22 
   Diluted   35.54    14.39    16.99    64.13 
        (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   72,241    48,287    52,447    204,602 
   b) Pharmaceutical Services and Active Ingredients   7,103    9,140    8,520    33,904 
   c) Others   257    45    61    1,410 
   Total   79,601    57,472    61,028    239,916 
                        
   Less: Inter-segment revenue   1,506    1,843    2,616    8,762 
   Total revenue from operations   78,095    55,629    58,412    231,154 
                        
2  Segment results                    
   Profit / (loss) before tax and interest from each segment                    
   a) Global Generics   38,387    15,231    19,667    69,966 
   b) Pharmaceutical Services and Active Ingredients   (221)   256    (70)   353 
   c) Others   226    47    97    1,419 
   Total   38,392    15,534    19,694    71,738 
                        
   Less: (i) Finance costs   192    311    71    1,099 
   (ii) Other un-allocable (income) / expenditure, net   (1,163)   (395)   484    (1,720)
   Total profit before tax   39,363    15,618    19,139    72,359 

 

Global Generics includes operations of Biologics business. Inter-segment revenue represents sale from Pharmaceutical Services and Active Ingredients to Global Generics 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 standalone financial results of Dr. Reddy's Laboratories Limited ("the Company"), which have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') prescribed under Section 133 of the 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 the Audit Committee and approved by the Board of Directors at their meetings held on 23 July 2025. The Statutory Auditors have carried out a limited review on the unaudited standalone financial results and issued unmodified report thereon.

 

2"License fees and service income" for the year ended 31 March 2025 includes:

a. an amount of Rs. 8,113 million (excluding GST) received as a consideration towards transfer of its nutraceutical and vitamins, minerals, herbals, and supplements portfolio to Dr. Reddy's and Nestlé Health Science Limited (the “Nutraceuticals subsidiary”) as part of the definitive agreement. This transaction pertains to Company’s Global Generics segment.

b. an amount of Rs.1,266 million received as a milestone payment upon U.S.FDA approval of DFD 29, in accordance with the license and collaboration agreement dated 29 June 2021 with Journey Medical Corporation. This transaction pertains to the Company’s Others segment.

 

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

a. an impairment loss of Rs. 862 million towards investment in equity shares and preference shares in the subsidiary, Svaas Wellness Limited, consequent to management's decision to scale down the business operations of certain digital initiatives. This impairment loss pertains to the Company’s Others segment.

b. an impairment loss of Rs. 174 million, consequent to adverse market conditions with respect to certain product related intangibles forming part of the Company’s Global Generics segment.

 

 

 

 

 

 

 

 

DR. REDDY'S LABORATORIES LIMITED

 

4The 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.

 

5The 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.

 

6The 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.

 

7The 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