FY2015 has been a good year for your Company. Let me begin by sharing
with you the key results.
- Consolidated net revenue increased by 12% over the previous year to
Rs 148.19 billion. This translated to US$ 2.38 billion.
- Earnings before interest, taxes, depreciation and amortization
(EBITDA) rose by 9% to Rs. 36.17 billion, or 24% of consolidated revenue.
- Profit before taxes (PBT) grew by 6% over the previous year to Rs.
28.16 billion, or US$ 452 million.
- Profits after tax (PAT) increased by 3% to Rs. 22.18 billion, at 15%
of consolidated net revenue.
- Cash and cash equivalents (including other investments) rose by 18%
to Rs39.65 billion as on 31 March 2015, or US$ 636 million.
Revenue from your Company''s Global Generics business increased by 15%
and stood at Rs. 120.56 billion. This was driven by North America, where
revenues grew by 17%; by India, which registered a growth of 14%; and
by Emerging Markets, which grew by 13% despite the sharp depreciation
of the Russian rouble.
In Global Generics, North America performed well with revenues at Rs.
64.72 billion, thus crossin g the US$ 1 billion mark. Twelve new
products were launched during the year. Last quarter of FY2015 saw the
commencement of OTC sales of Habitrol® - nicotine replacement therapy
transdermal patches - a brand that was acquired from Novartis Consumer
Health Inc. in November 2014.
We are well on track with the introduction of new generics in the US
market. As of 31 March 2015, we have 68 abbreviated new drug
applications (ANDAs) filed for approval from the US Food and Drug
Administration (USFDA). Of these, 43 are Para IV filings, and we
believe that 13 of them have the ''First to File'' status.
India Generics also performed satisfactorily. Revenues in FY2015
grew to Rs. 17.87 billion. In doing so, the business accounted for 15% of
your Company''s Global Generics sale, and 12% of total revenues. The
only problem was in Russia and Ukraine, where the sharp depreciation of
the rouble and the hryvnia, reduced revenues in rupee terms - although
the business grew smartly in the local currencies.
FY2014 was a difficult year for the Pharmaceutical Services and Active
Ingredients (PSAI) business - one that saw declining revenues. That has
been reversed. PSAI revenues in FY2015 increased by 6% to reach Rs. 25.46
billion; the business also posted significant margin improvement due to
a more profitable product mix. Regarding active pharmaceutical
ingredients (APIs), we globally filed 77 drug master files (DMFs) in
FY2015, taking the cumulative number of DMF filings on 31 March 2015 to
As your Company''s founder, Dr. K. Anji Reddy always said, we are in the
business of treating diseases and saving lives.
We strive every day to do what matters most to patients - accelerating
access to affordable medicines and finding intelligent solutions for
unmet therapeutic needs. In this journey, we have steadily moved on
from producing relatively simple APIs and formulations to difficult-to-
produce APIs, complex generics including injectables, proprietary
products and biosimilars - many of which deal with cancers, diabetes
and cardiovascular disease, serious infections, gastrointestinal
ailments, pain management, pediatrics and dermatology. With more than
2000 scientists across our development centers in India, the UK, the US
and the Netherlands, we have the ability to leverage the best of global
Our skills in science and technology range from synthetic organic
chemistry, development of biologics and formulation development to
small-molecule-based drug discovery. These are complemented by
specialized research facilities.
Our product development capabilities in India span synthetic organic
chemistry, analytical chemistry, process engineering, formulations
development, polymorphism, bio-pharmaceutics, management of
intellectual property and projects and regulatory science. Octoplus,
our specialty research facility in the Netherlands, concentrates on
development of injectables, which works better, longer and with fewer
side effects. Chirotech, a facility located at Cambridge (UK) helps our
custom pharmaceutical services business with its distinctive
competencies in organic and bio-catalysis. And our biologics facility
in Hyderabad has helped us build unique biotechnology capabilities and
so create biosimilars for complex and expensive therapies and make them
accessible to patients.
Your Company''s commitment to finding new cures is evident in its focus
I am proud to inform you that in FY2015 alone R&D expenses grew by 41%
to Rs. 17.45 billion, and accounted for 11.8% of sales, versus 9.4% in
I look forward to an even better year in FY2016. A year when we will
introduce new formulations, maintain best-in- class globally certified
scientific, technological and manufacturing facilities, and remain both
strategic and nimble in providing complex
With the commitment of your Company''s outstanding set of employees and
your good wishes, I believe we will get there.
With best regards,