Edgar Filing: DR REDDYS LABORATORIES LTD

DR. REDDY'S LAOBRATORIES LIMITED

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of May, 2003

Commission File Number – 1-15182

DR. REDDY’S LABORATORIES LIMITED

(Name of Registrant)

7-1-27, Ameerpet
Hyderabad, Andhra Pradesh 500 016, India
+91-40-23731946
______________
(Address of Principal Executive Offices)

Indicate by check mark whether registrant files or will file annual reports under cover of Form 20-F or Form 40-F.


Form 20-F [X]		Form 40-F [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


Yes [ ]		No [X]

If “Yes” is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b):

Not applicable.

TABLE OF CONTENTS


Notice to Stock Exchange - All Stock Exchanges
Notice to Stock Exchange - Board meeting
Press Release
Notice to Stock Exchange - Grant of Options
Press Release
Notice to Stock Exchanges - Board Resolution
Audited Financial Results
FY 03 Financial Performance Review
Signatures

Table of Contents

(1)		Notice to Stock Exchange, “Disclosure of Shareholding,” May 5, 2003.

(2)		Notice to Stock Exchange, “Board meeting on May 30, 2003,” May 7, 2003.

(3)		Press Release, “Dr. Reddy’s announces ANDA filing for Ondansetron HCl Tablets, Equivalent to 16 mg Base,” May 8, 2003.

(4)		Notice to Stock Exchange, “Grant of Options under Dr. Reddy’s Employees Stock Option Scheme, 2002,” May 13, 2002.

(5)		Press Release, “Dr. Reddy’s revenue at Rs.18070 million; Net income at Rs.3532 million,” May 31, 2003.

(6)		Notice to Stock Exchanges, “Board Resolutions of May 30, 2003,” May 31, 2003.

(7)		Dr. Reddy’s Laboratories Limited Audited Financial Results for the Year Ended March 31, 2003.

(8)		Dr. Reddy’s Laboratories Ltd. FY 03 Financial Performance Review.




		Dr. Reddy’s Laboratories Ltd. 7-1-27 Ameerpet Hyderabad 500 016 India

		Tel: 91 40 2373 1946 Fax: 91 40 2373 1955

		www.drreddys.com

May 5, 2003

All Stock Exchanges

Sub: Disclosure of shareholding

Dear Sir,

Pursuant to Sub Regulation (3) of Regulation 7 of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, we hereby intimate you that Fidelity Investments has acquired 43,709 shares in the Company which taken together with the shares and voting rights held by it, would entitle it to more than 5% shares or voting rights in the Company.

Fidelity Investments has informed the Company vide its letter dated April 29, 2003 that their shareholding in the Company taken together with the ADRs is 3,834,757 which is equivalent to 5.01% of the paid up capital of the Company. The letter received from Fidelity Investments is enclosed.

Kindly take the above information on record.

Thanking you,

Yours faithfully
For Dr. Reddy’s Laboratories Ltd.
/s/ Santosh Kumar Nair
Santosh Kumar Nair
Company Secretary

cc
Jule Finocchio
Compliance Specialist
Fidelity Management & Research Company
82 Devonshire Street
Boston, MA 02109-3614




		Dr. Reddy’s Laboratories Ltd. 7-1-27 Ameerpet Hyderabad 500 016 India

		Tel: 91 40 2373 1946 Fax: 91 40 2373 1955

		www.drreddys.com

May 7, 2003
The Secretary
Hyderabad Stock Exchange Ltd.
Mumbai Stock Exchange
Ahmedabad Stock Exchange
Calcutta Stock Exchange
Madras Stock Exchange
New York Stock Exchange
National Stock Exchange

Sub: Notice of the Board meeting under Clause 41 of the Listing Agreement

Dear Sir,

The Board of Directors of the Company is scheduled to meet on May 30, 2003 at New York, the United States of America to, inter alia, discuss and take on record the audited financial results of the Company for the year ended March 31, 2003.

The Board will also consider declaration of Dividend for the year 2002-2003 at this meeting.

Thanking you,

Yours faithfully
For Dr. Reddy’s Laboratories Ltd.
/s/ Santosh Kumar Nair
Santosh Kumar Nair
Company Secretary




		Dr. Reddy’s Laboratories Ltd. 7-1-27 Ameerpet Hyderabad 500 016 India

		Tel: 91 40 2373 1946 Fax: 91 40 2373 1955

		www.drreddys.com

Dr. Reddy’s announces ANDA filing for Ondansetron HCl Tablets, Equivalent to 16 mg Base

Hyderabad, India, May 8 2003:

Dr. Reddy’s Laboratories (NYSE:RDY) today announced that the Company had filed an Abbreviated New Drug Application (ANDA) with the U.S. Food and Drug Administration for Ondansetron Hydrochloride tablets, equivalent to 16 mg base, with a Paragraph IV certification on the four Orange Book patents. The 16 mg dose is not currently marketed by GlaxoSmithKline.

Dr. Reddy’s notified GlaxoSmithKline, upon which the latter filed a lawsuit against the Company in the United States District Court for the District of New Jersey alleging patent infringement on three of the four Orange Book patents as well as a process patent not listed in the Orange Book.

Ondansetron HCl is the generic version of GlaxoSmithKline’s Zofran. The branded product is indicated for the prevention of postoperative nausea and vomiting, cancer chemotherapy induced nausea and vomiting and radiotherapy induced nausea and vomiting. The brand has annual sales in the United States of approximately $900 million for all dosage forms and strengths (Source: IMS 2002).

About Dr. Reddy’s

Established in 1984, Dr. Reddy’s Laboratories (NYSE: RDY) is an emerging global pharmaceutical company with proven basic research capabilities. The company develops, manufactures and markets a wide range of pharmaceutical products in India and overseas. Dr. Reddy’s produces finished dosage forms, active pharmaceutical ingredients, diagnostic kits, critical care and biotechnology products. The basic research program of Dr. Reddy’s focuses on cancer, diabetes, bacterial infections and pain management.

Contact Information

Media: R Rammohan at rammohanr@drreddys.com or on +91-40-55511620 or
Bhaswati Banerjee at banerjeeb@drreddys.com or on +91-40-55511600.

Investors and Financial Analysts:

US & Europe – Artie Rokkam at artie@drreddys.com or on + 001-201-760-2880 X211 Asia Pacific – Nikhil Shah at nikhilshah@drreddys.com or on +91-40-55511532.




		Dr. Reddy’s Laboratories Ltd. 7-1-27 Ameerpet Hyderabad 500 016 India

		Tel: 91 40 2373 1946 Fax: 91 40 2373 1955

		www.drreddys.com

The Secretary/The Executive Director
Hyderabad Stock Exchange Ltd.
Mumbai Stock Exchange
Ahmedabad Stock Exchange
Calcutta Stock Exchange
Madras Stock Exchange
New York Stock Exchange

Sub: Grant of Options under Dr. Reddy’s Employees Stock Option Scheme, 2002.

Pursuant to clause 25 of the listing agreement, we hereby intimate you that the company has granted 369,300 stock options to the employees of the company through a circular resolution of the Compensation Committee of board of directors passed on May 13, 2003. The shares covered by such options are 369,300.

The options have been granted at a price of Rs.883.00 per option, which is equivalent to weighted average share price of the company of last 30 days on BSE.

The options may be exercised in a phased manner after a vesting period of 12 months but before completion of five years from the date of vesting.

Kindly take the above information on record.

Thanking you,

Yours faithfully
For Dr. Reddy’s Laboratories Ltd.
/s/ Santosh Kumar Nair
Santosh Kumar Nair
Company Secretary




		Dr. Reddy’s Laboratories Ltd. 7-1-27 Ameerpet Hyderabad 500 016 India

		Tel: 91 40 2373 1946 Fax: 91 40 2373 1955

		www.drreddys.com

Dr. Reddy’s revenue at Rs.18070 million;
Net income at Rs.3532 million

New Jersey, US, May 30, 2003 & Hyderabad, India, May 31, 2003: Dr. Reddy’s Laboratories Ltd. today announced its audited financial results for the financial year ended March 31, 2003.

Notes

	1.		*In line with global disclosure standards, the company commenced reporting its financials on a consolidated basis since Q1 FY03.*

	2.		*Current financial year financial discussions below are on a consolidated basis as per the US GAAP.*

	3.		*Current financial year consolidated US GAAP financials are not comparable with earlier standalone Indian GAAP releases of the company.*

	4.		*Detailed analysis of the financials is available on the Company’s website at* www.drreddys.com.

Audited US GAAP Financials for the financial year ended March 31, 2003
[All figures in Indian Rupees (INR) million except EPS. All dollar figures based
on convenience translation rate of 1USD = Rs.47.53]


	FY03									FY02
							as									as			Growth
Particulars	US $			INR			a%			US $			INR			a%			%

Total Revenue		380			18070			100			350			16623			100			9
Cost of revenues		165			7839			43			145			6869			41			14
Gross profit		215			10231			57			205			9754			59			5
Total operating expenses		145			6885			38			99			4688			28			47
Operating income		70			3346			19			107			5066			30			(34	)
Equity in loss of affiliates		2			92			1			3			131			1			(29	)
Other expenses/(income) net		(14	)		(683	)		(4	)		(3	)		(154	)		(1	)		342

FY03

FY02

Growth

Particulars

US $

INR

US $

INR

Income before income taxes and minority interest

3937

107

5090

(23

)

Income tax (benefit)/expense

398

154

159

Net income

3532

104

4921

(28

)

DEPS

0.97

46.16

1.36

64.62

Key highlights

•		Total Revenue at Rs.18070 million, an increase of 9% from the previous fiscal.

•		Net Income at Rs.3532 million for this fiscal as against Rs.4921 million in FY 02.

•		Revenues outside of India at Rs.11581 million compared to Rs.10571 million in the previous financial year. A Year on Year (YoY) growth of 10%.

•		Revenues from North America at Rs.5853 million as against Rs.6037 million in FY02, a marginal decline of 3%. APIs grew by 54% in this market. In Generics, contribution from generic tizanidine, launched in the US in July 2002, offset the decline in revenues from fluoxetine, post expiry of one-time marketing exclusivity in January 2002.

•		Revenues from Europe at Rs.1401 million as against Rs.781 million in FY02; a YoY growth of 79%. Growth primarily driven by the acquisition of BMS and Meridian in the UK, presently known as Dr. Reddy’s Laboratories (EU) Limited and Dr. Reddy’s Laboratories (UK) Limited respectively. Combined revenues at Rs.759 million in FY03.

•		Revenues from Russia at Rs.1676 million as against Rs.1312 million in FY02. A YoY growth of 28% driven by growth in key brands — Omez, Enam, Ciprolet & Ketorol.

Active Pharmaceutical Ingredients (APIs)

	•		Revenues at Rs.6341 million as against Rs.5237 million in FY02, a growth of 21%.

	•		Revenues outside of India at Rs.4592 million as against Rs.3589 million in FY02. A YoY growth of 28%.

	•		Revenues from North America at Rs.2398 million. North America’s contribution to the API segment increased from 30% in FY02 to 38% this financial year. Revenues grew by 54% driven by Nizatidine, which contributed Rs.563 million.

	•		Revenues from India at Rs.1749 million as against Rs.1648 million in FY02. A YoY growth of 6%, led by volume growth in key products.

	•		The Company filed 14 US Drug Master Files (DMFs) during this financial year taking the total DMF filings to 40.

Branded Formulations highlights

•

Revenues at Rs.6860 million as against Rs.6035 million in FY02.

Branded Formulations – India

	•		Revenues at Rs.4303 million, an increase of 8% over FY02.

	•		As per March ORG MARG, the Company grew at a MAT of 16.3% as against the industry average of 5.7%.

Branded Formulations – International

	•		Revenues at Rs.2557 million, an increase of 25% over FY02. The growth was primarily driven by the good performance in the CIS markets.

	•		Revenues from Russia at Rs.1662 million as against Rs.1312 million in FY02. A YoY growth of 27% driven by growth in key brands – Omez, Enam, Ciprolet & Ketorol.

	•		Revenues from other CIS markets at Rs.430 million as against Rs.307 million in FY02, a YoY growth of 40%.

Generics highlights

	•		Revenues in this segment at Rs.4284 million as against Rs.4527 million in FY02.

	•		Revenues from North America at Rs.3445 million. North America contributed 80% to the total revenues in this segment.

	•		Revenues from Europe at Rs.814 million as against Rs.12 million in FY02. Europe contributed 19% to the total revenues in this segment. Growth in Europe primarily driven by the acquisition of BMS and Meridian in the UK, presently known as Dr. Reddy’s Laboratories (EU) Limited and Dr. Reddy’s Laboratories (UK) Limited respectively. Combined revenues at Rs.759 million in FY03.

	•		Fluoxetine capsules 40mg revenues at Rs.1896 million compared to Rs.3664 million in FY02, which included one-time marketing exclusivity revenues.

	•		Tizanidine tablets 2 & 4 mg, launched in the US in July 2002, contributed Rs.778 million to the revenues in North America.

	•		Omeprazole capsules launched in UK in October 2002, was the key contributor to revenues from Europe in this segment, with revenues of Rs.283 million for FY03.

	•		During the year, the Company filed 14 Abbreviated New Drug Applications (ANDAs) including 3 pending acceptance by the USFDA. Of the 14 filings, 10 were Para IV certifications. This takes the total ANDA filings to 34. Currently, there are 23 ANDA filings pending approval with the United States Food and Drug Administration (USFDA).

Other Businesses’ highlights

	•		Revenues in the diagnostics, critical care & biotechnology segments at Rs.428 million.

	•		Revenues in the Custom Chemical Services (CCS) business declined to Rs.69 million from Rs.175 million in FY02.

Income Statement highlights

	•		Gross Margins on total revenues at 57% driven by improved business mix. This compares with gross margins of 59% in FY02 driven by fluoxetine one-time marketing exclusivity revenues.

	•		R&D expenditure increased by 85% to Rs.1375 million this fiscal from Rs.742 million in FY02. As a percentage, R&D expenditure is at 7.6% of total revenues as against 4.5% in FY02. The increase in R&D expenditure is primarily on account of higher number of bio-studies in the Generics business, higher development activity in APIs and CCS.

	•		Selling, General & Administration (SG&A) expenses increased by Rs.1352 million to Rs.5020 million this fiscal. As a percentage, SG&A expenses is at 28% of total revenues compared to 22% in FY02. This increase is primarily on account of increase in legal & professional charges, increase in manpower cost and increase in marketing expenses.

	•		The cash and cash equivalents increased to Rs.7273 million as on March 31, 2003 from Rs.5109 million as on March 31, 2002.

General information

The following items were considered and adopted by the Board of Directors of Dr. Reddy’s Laboratories today:

	•		Audited financial results for the financial year ended March 31, 2003 as required under Clause 41 of the listing agreement.

	•		Recommendation of a dividend of Rs.5 on each equity share of Rs.5.

	•		The 19^th Annual General Meeting of the Company will be held on August 25, 2003.

	•		Merger of Zenovus Biotech Limited, a wholly owned subsidiary of the Company, with Dr. Reddy’s.

	•		Closure of operations of the Diagnostics business of the Company.

	•		Recommendation of delisting of shares of the Company from the Hyderabad Stock Exchange, the Ahmedabad Stock Exchange, the Kolkatta Stock Exchange and the Madras Stock Exchange.

--end--




		Dr. Reddy’s Laboratories Ltd.
		7-1-27 Ameerpet
		Hyderabad 500 016 India

		Tel: 91 40 2373 1946
		Fax: 91 40 2373 1955

		www.drreddys.com

May 31, 2003

The Secretary/The Executive Director
Hyderabad Stock Exchange Ltd.
Mumbai Stock Exchange
Ahmedabad Stock Exchange
Calcutta Stock Exchange
Madras Stock Exchange
National Stock Exchange

The Board of the company in its meeting held on May 30, 2003 at New York, USA have declared the financial results of the Company. We are enclosing herewith the following:

1. Audited financial results of the company for the financial year 2002-03.

2. Summarized financial results of the company for the financial year 2002 - 03 under USGAAP.

3. Press Release on “Dr. Reddy’s revenue at Rs.18070 million; Net income at Rs.3532 million”.

The Board also took the following decisions at this meeting:

1. Recommendation of a dividend of Rs.5 on each equity share of Rs.5.

2. The 19th Annual General Meeting of the Company will be held on August 25, 2003.

3. Merger of Zenovus Biotech Limited, a wholly owned subsidiary of the Company, with Dr. Reddy’s.

4. Closure of operations of the Diagnostics business of the Company.

5. Recommendation of delisting of shares of the Company from the Hyderabad Stock Exchange, the Ahmedabad Stock Exchange, the Kolkata Stock Exchange and the Madras Stock Exchange.

Please also note that Dr. A. Venkateswarlu, Director of the Company, has decided not to seek re-appointment at the ensuing Annual General Meeting.

Kindly take the above information on record.

Thanking you,

Yours faithfully
for Dr. Reddy’s Laboratories Ltd.
/s/ Girish Tekchandani
Girish Tekchandani
Asst. Company Secretary




		Dr. Reddy’s Laboratories Ltd.
		7-1-27 Ameerpet
		Hyderabad 500 016 India

		Tel: 91 40 2373 1946
		Fax: 91 40 2373 1955

		www.drreddys.com

DR. REDDY’S LABORATORIES LIMITED
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2003


			All amounts in Indian Rupees lakhs, except share data

			9 months ended			Quarter ended						Year ended			Year ended

			31.12.2002			31.03.2003			31.03.2002			31.03.2003			31.03.2002
Sl No.		PARTICULARS	(Unaudited)			(Unaudited)			(Unaudited)			(Audited)			(Audited)

1		Net Sales / Income from Operations (including Excise Duty)		118,159			41,674			41,004			159,833			160,010
2		Other Income		5,276			1,393			1,392			6,669			5,153
3		Total Income (1 + 2)		123,435			43,067			42,396			166,502			165,163
4		Total Expenditure		87,245			29,713			29,536			116,958			112,027
	a	(Increase)/Decrease in stock		(2,261	)		(103	)		3,220			(2,364	)		(1,101	)
	b	Material consumed		40,857			9,285			8,882			50,142			43,997
	c	Excise duty		6,840			1,632			2,084			8,472			7,897
	d	Research and development expenses		8,551			4,835			3,791			13,386			9,803
	e	Personnel costs		8,467			3,641			2,969			12,108			10,059
	f	Selling expenses		11,649			3,884			3,601			15,533			13,438
	g	Deferred revenue expenditure written-off		—			—			—			—			9,314
	h	Provision for decline in long-term investments		—			514			656			514			2,174
	I	Other expenditure		13,142			6,025			4,333			19,167			16,446
5		Profit Before Interest, Depreciation, Amortisation, Tax (3 - 4)		36,190			13,354			12,860			49,544			53,136
6		Interest		295			50			405			345			1,090
7		Profit After Interest but Before Depreciation, Amortisation, Tax (5 - 6)		35,895			13,304			12,455			49,199			52,046
8		Depreciation & Amortisation of Brand Acquisition Cost		4,444			1,639			1,379			6,083			4,969
9		Provision for Taxation		4,194			(172	)		706			4,022			3,952
10		Deferred Tax Expense/(Benefit)		7			(122	)		252			(115	)		(2,840	)
11		Net Profit (7 - 8 - 9 - 10)		27,250			11,959			10,118			39,209			45,965
12		Paid - up Equity Share Capital (Face value Rs.5/- each)		3,826			3,826			3,826			3,826			3,826
13		Reserves (Excluding Revaluation Reserve)											177,356			141,973
14		Aggregate of Non-Promoter share holding
		-Number of Shares (Face value Rs.5/- each)		56,607,324			56,604,824			56,634,748			56,604,824			56,634,748
		-Percentage of share holding		73.98			73.98			74.02			73.98			74.02
15		Earnings per share for the period (in Rupees) per Rs.5/- share
		Basic		35.61			15.63			13.30			51.24			60.41
		Diluted		35.61			15.63			13.30			51.24			60.41
				(Not Annualised	)		(Not Annualised	)		(Not Annualised	)

SEGMENT WISE REVENUE, RESULTS & CAPITAL EMPLOYED


		All amounts in Indian Rupees lakhs, except share data

		9 months ended		Quarter ended				Year ended		Year ended

		31.12.2002		31.3.2003		31.3.2002		31.3.2003		31.03.2002
Sl. No.	PARTICULARS	(Unaudited)		(Unaudited)		(Unaudited)		(Audited)		(Audited)

	Segment wise Revenue, Results and Capital Employed:
1	Segment Revenue :
	a) Active Pharmaceutical Ingredients and Intermediates	51,641		12,895		17,011		64,536		59,518
	b) Formulations	54,122		16,853		15,909		70,975		62,937
	c) Generics	19,314		13,229		8,319		32,543		41,410
	d) Diagnostics, Critical Care and Biotechnology	3,199		792		1,112		3,991		4,245
	e) Drug Discovery	—		—		—		—		3,436
	Total	128,276		43,769		42,351		172,045		171,546
	Less: Inter segment revenue	7,737		1,872		1,897		9,609		10,463
	Add : Other unallocable Income	2,896		1,170		1,942		4,066		4,080
	Total Income	123,435		43,067		42,396		166,502		165,163
2	Segment Results :
	Profit/(loss) before tax and interest from each segment
	a) Active Pharmaceutical Ingredients and Intermediates	9,059		1,940		3,373		10,999		8,066
	b) Formulations	17,506		5,120		4,526		22,626		21,821
	c) Generics	10,512		8,451		6,647		18,963		34,024
	d) Diagnostics, Critical Care and Biotechnology	261		(596	)	(287	)	(335	)	(63	)
	e) Drug Discovery	(3,802	)	(1,396	)	(1,764	)	(5,198	)	(1,756	)
	Total	33,536		13,519		12,495		47,055		62,092
	Less: (i) Interest	295		50		405		345		1,090
	(ii) Other un-allocable Expenditure/(Income)	1,790		1,804		1,014		3,594		13,925
	Total Profit before tax	31,451		11,665		11,076		43,116		47,077
3	Capital Employed:
	a) Active Pharmaceutical Ingredients and Intermediates	40,275		40,254		42,657		40,254		42,657
	b) Formulations	30,391		29,911		30,179		29,911		30,179
	c) Generics	17,661		25,485		18,866		25,485		18,866
	d) Diagnostics, Critical Care and Biotechnology	4,706		4,089		4,663		4,089		4,663
	e) Drug Discovery	938		662		322		662		322
	f) Others	83,435		80,781		53,015		80,781		53,015
	Total	177,406		181,182		149,702		181,182		149,702

	Notes:

	1		In terms of the Accounting Standard (AS) 17- Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI), the revenue, results and capital employed have been given business segment wise. Although certain assets and liabilities of the Company were used / contracted interchangeably, the Company has classified them to the segments to the extent that are identified and the balance of assets and liabilities were considered as others.

	2		Revenue for the quarter and year ended March 31, 2003 includes Rs.4,291 lakhs, Rs. 11,863 lakhs respectively (Quarter and year ended March 31,2002 Rs.6,536 lakhs, Rs.32,857 lakhs respectively) from sale of Fluoxetine Finished 40 mg Dosages in US.

	3		Income from licence fees which is a part of income from operations for the current periods is Nil. (year ended March 31, 2002 : Rs.3436 lakhs).

	4		Directors have recommended dividend of Rs. 5/- per share subject to approval of shareholders.

	5		On April 11, 2002, the Company acquired the entire share capital of Dr. Reddy’s Laboratories (EU) Ltd. (formerly BMS Laboratories Ltd.) and its consolidated subsidiary, Dr. Reddy’s Laboratories (UK) Ltd. (formerly Meridian Healthcare Ltd.), for a total consideration of Rs.644,413,000 (GBP 9.16 Mn.).

	6		The figures for the previous periods have been re-grouped, wherever necessary.

	7		The above results have been taken on record by the Board of Directors of the Company at its meeting held on May 30, 2003.


		For Dr. Reddy’s Laboratories Limited
		/s/ Satish Reddy
		Satish Reddy
		Managing Director & Chief Operating Officer

		Place: New York, USA
		Date: May 30, 2003



		Dr. Reddy’s Laboratories Ltd.
		7-1-27 Ameerpet
		Hyderabad 500 016 India

		Tel: 91 40 2373 1946
		Fax: 91 40 2373 1955

		www.drreddys.com

Dr. Reddy’s Laboratories Ltd.
NYSE:RDY
FY 03 Financial Performance Review

Table of Contents


FY 03 USGAAP

	Financial Snapshot	02
	Revenue Mix	03
	Active Pharmaceutical Ingredients	04
	Generic Formulations	04
	Branded Formulations	05
	Other Businesses	06
	P&L Highlights	07

Q4 FY 03 USGAAP

	Financial Snapshot	08
	Revenue Mix	08
	P&L Highlights	09

All figures in millions, except EPS
All dollar figures based on convenience translation rate of 1USD = Rs 47.53

AUDITED INCOME STATEMENT


	FY03									FY02

Particulars	($)			(Rs.)			%			($)			(Rs.)			%			Growth %

Net Product Revenues		380			18,070			100			345			16,409			99			10
License Fees		0			0			0			3			125			1			(100	)
Services		0			0			0			2			89			0			(100	)
Total Revenues		380			18,070			100			350			16,623			100			9
Cost of revenues		165			7,839			43			145			6,869			41			14
Gross profit		215			10,231			57			205			9,754			59			5
Selling, General & Administrative Expenses		106			5,020			28			77			3,668			22			37
R&D Expenses		29			1,375			8			16			742			4			85
Amortization Expenses		9			419			2			10			488			3			(14	)
Forex loss/ (gains)		1			70			0			(4	)		(209	)		(1	)		(134	)
Total operating expenses		145			6,885			38			99			4,688			28			47
Operating income		70			3,346			19			107			5,066			30			(34	)
Equity in loss of affiliates		2			92			1			3			131			1			(29	)
Other expenses/(income) net		(14	)		(683	)		(4	)		(3	)		(154	)		(1	)		342
Income before income taxes and minority interest		83			3,937			22			107			5,090			31			(23	)
Income tax (benefit)/expense		8			398			2			3			154			1			159
Minority interest		0			7			0			0			15			0			(55	)
Net income		74			3,532			20			104			4,921			30			(28	)
DEPS		0.97			46.16						1.36			64.62
Exchange rate		47.53									47.53
Key Balance Sheet Items
Cash and cash equivalents		153			7,273						107			5,109
Accounts receivable, net of allowances		76			3,620						80			3,812
Inventories		59			2,781						46			2,194
Property, plant and equipment, net		102			4,830						80			3,799


Revenue Mix by Segment		(Figures in million)


		FY03,		FY03,		as a		FY02,		FY02,		as a		Growth
		$		INR		%		$		INR		%		%

APIs			133		6,341		35		110		5,237		31		21
	India		36		1,749		28		35		1,648		31		6
	International		97		4,592		72		75		3,589		69		28
Branded Formulations			144		6,860		38		127		6,035		36		14
	India		90		4,303		63		84		3,993		66		8
	International		54		2,557		37		43		2,042		34		25
Generics			90		4,284		24		95		4,527		27		(5	)
Emerging Business			9		428		2		9		429		3		0
Custom Chemical Business			2		69		0		4		175		1		(61	)
Drug Discovery			0		0		0		3		125		1		(100	)
Others			2		88		0		2		95		1		(7	)

Total			380		18,070		100		350		16,623		100		9


Revenue Mix by Geography		(Figures in million)


	FY03,		FY03,		as a		FY02,		FY02,		as a		Growth
	$		INR		%		$		INR		%		%

India		137		6,489		36		127		6,052		36		7
North America		123		5,853		32		127		6,037		36		(3	)
Russia		35		1,676		9		28		1,312		8		28
Europe		29		1,401		8		16		781		5		79
Others		56		2,651		15		52		2,441		15		9

TOTAL		380		18,070		100		350		16,623		100		9

Business Highlights

	•		Revenues at Rs 18 billion as against Rs 17 billion in FY02. YoY growth of 9%.

	•		Fluoxetine capsules 40mg revenues at Rs 1.9 billion as against Rs 3.7 billion in FY 02, which included one-time marketing exclusivity revenues. Adjusting for fluoxetine in both the years, growth in overall revenues at 25% over FY02.

	•		Revenues outside India at Rs 11.6 billion as against Rs 10.6 billion in FY02. YoY growth of 10%.

	•		Revenues in North America at Rs 5.8 billion as against Rs 6 billion in FY02, a marginal decline of 3%. Growth in APIs by 54% and contribution from generic Tizanidine launched in July 2002 offset the decline in revenues from fluoxetine, post expiry of one-time marketing exclusivity in January 2002.

	•		Revenues in Europe at Rs 1.4 billion as against Rs 781 million in FY02; YoY growth of 79%. This growth has been primarily driven by the acquisition of BMS and Meridian in the UK, presently known as DRL, EU and DRL, UK respectively. Combined revenues were at Rs 759 million in FY03.

	•		Revenues in Russia at 1.7 billion as against Rs 1.3 billion in FY02. YoY growth of 28% driven by growth in key products of Omez, Enam, Cipro & Keterol.

Active Pharmaceutical Ingredients (APIs)

	•		Revenues at Rs 6.3 billion as against Rs 5.2 billion in FY02. YoY growth of 21%.

	•		Revenues outside India at Rs 4.6 billion as against Rs 3.6 billion in FY02. YoY growth of 28%; Contributes 72% to the segment’s revenues as against 69% in FY02.

	•		North America contributed 38% of total revenues as against 30% in FY02. Revenues grew by 54% driven by Nizatidine, which contributed Rs 563 million in revenues.

	•		The Company filed 14 US DMFs during the year taking the total filings to 40.

	•		Revenues in India at Rs 1.7 billion as against Rs 1.6 billion in FY02. YoY growth of 6% led by volume growth in key products.


API - Geographic Mix		(Figures in million)


	FY03,		FY03,		As a		FY02,		FY02,		as a		Growth
	$		INR		%		$		INR		%		%

North America		50		2,398		38		33		1,560		30		54
India		37		1,749		28		35		1,648		31		6
Europe		10		466		7		8		405		8		15
ROW		36		1,728		27		34		1,624		31		6

TOTAL		133		6,341		100		110		5,237		100		21

Generic Formulations

•

Revenues in this segment at Rs 4.3 billion as against Rs 4.5 billion in FY02.

	•		North America contributed 80% to the total revenues and Europe contributed 19%.

	•		Fluoxetine capsules 40mg revenues at Rs 1.9 billion as against Rs 3.7 billion in FY 02, which included one-time marketing exclusivity revenues.

	•		Tizanidine tablets 2 & 4 mg, launched in the US in July 2002, contributed Rs 778 million to the revenues in North America.

	•		Revenues in Europe at Rs 814 million as against Rs 12 million in FY02. This growth has been primarily driven by our acquisition of BMS and Meridian in the UK, presently known as DRL, EU and DRL, UK respectively. Combined revenues were at Rs 759 million in FY03.

	•		Omeprazole capsules launched in UK in October 2002, was the key contributor, with revenues of Rs 283 million for FY03.

	•		During the year, the Company filed 14 ANDAs of which 3 are pending acceptance by the FDA. Of the 14 filings, 10 are Para IV certifications. This takes the total ANDAs pending at the USFDA to 23.

Branded Formulations - International

	•		Revenues at Rs 2.6 billion, an increase of 25% over FY02. The growth was primarily driven by the performance of the CIS markets.

	•		Revenues in Russia at 1.7 billion as against Rs 1.3 billion in FY02. YoY growth of 27% driven by growth in key products of Omez, Enam, Cipro & Keterol.

	•		Revenues in other CIS markets at Rs 430 million as against Rs 307 million in FY02. YoY growth of 40% with growth coming in from all markets.


Geographic Mix		(Figures in million)


	FY03,		FY03,		as a		FY02,		FY02,		as a		Growth
Country	$		INR		%		$		INR		%		%

Russia		35		1,662		65		28		1,312		64		27
Ukraine		3		157		6		2		111		5		42
Kazakhstan		3		145		6		2		96		5		52
Belarus		2		107		4		1		63		3		71
Vietnam		1		62		2		1		67		3		(7	)
Others		9		424		17		8		394		20		7

Total		54		2,557		100		43		2,042		100		25

Branded Formulations - India

	•		Revenues at Rs 4.3 billion, an increase of 8% over FY02. The growth has been lower than expected primarily on account of an overall decline in industry growth rate and lower off-take by trade following uncertainty over introduction of Value Added Tax system announced by the Government of India in the month of March.

	•		As per March ORG MARG, the Company grew at a MAT of 16.3% as against the industry average of 5.7%.


Revenues by Therapies									*(Figures in million)*

Therapeutic	FY03,		FY03,		as a		FY02,		FY02,		as a		Growth
Segment	$		INR		%		$		INR		%		%

Gastro Intestinal		17		778		18		15		735		18		6
Pain Management		17		818		19		16		781		20		5
Cardiovascular		15		706		16		14		642		16		10
Anti Infectives		10		491		11		10		496		12		(1	)
Natural		11		527		12		12		561		14		(6	)
Women’s Health Care		5		208		5		5		214		5		(3	)
Diabetic Care		3		162		4		3		146		4		11
Dermatology		3		157		4		3		125		3		26
Specialty		7		326		8		6		270		7		21
Dental		3		131		3		0		23		1		464

Total		91		4,303		100		84		3,993		100		8


Revenues by Key brands									*(Figures in million)*

	FY03,		FY03,		as a		FY02,		FY02,		as a		Growth
Brand	$		INR		%		$		INR		%		%

Nise		14		655		15		12		585		15		12
Omez		10		467		11		10		461		12		1
Stamlo		5		254		6		5		243		6		4
Ciprolet		4		169		4		5		218		5		(22	)
Stamlo Beta		3		154		4		3		128		3		20
Enam		3		145		3		3		142		4		2
Antoxid		2		100		2		2		109		3		(9	)


	FY03,		FY03,		as a		FY02,		FY02,		as a		Growth
Brand	$		INR		%		$		INR		%		%

Reclide		2		85		2		2		87		2		(2	)
Clamp		2		83		2		1		53		1		59
Gaity		2		81		2		0		22		1		274
Others		44		2,110		49		41		1,946		48		8

Total		91		4,303		100		84		3,993		100		8

Other Businesses

	•		Revenues in the diagnostics, critical care & biotechnology segment remain unchanged at Rs 428 million.

	•		Revenues in the Custom Chemical Services declined to Rs 69 million from Rs 175 million in FY02.

Income Statement Highlights

	•		Gross Margins on total revenues at 57% driven by improved business mix. This compares with gross margins of 59% in FY02 driven by fluoxetine one-time marketing exclusivity revenues.

	•		R&D expenditure increased by 85% to Rs 1.4 billion from Rs 742 million in FY02. As a %, R&D expenditure is at 7.6% of total revenues as against 4.5% in FY02. The full year R&D spend is in line with our earlier guidance of 8% of total revenues. The increase in R&D expenditure is primarily on account of higher number of bio-studies in Generics, higher development activity in APIs and CCS.

	•		Selling, General & Administration (SG&A) expenses increased by Rs 1.3 billion to Rs 5 billion. As a %, SG&A expenses is at 28% of total revenues as against 22% in FY02. This increase is primarily on account of increase in legal & professional charges, increase in manpower cost and increase in marketing expenses.

	•		During the year, the Indian Rupee, the functional currency of the Company, strengthened against the US Dollar resulting in a foreign exchange loss of Rs 70 million compared with a foreign exchange gain of Rs 209 million in FY02.

	•		Other income (net) increased to Rs 683 million from Rs 154 million in FY02. This increase is primarily on account of the increase in interest income on fixed deposit by Rs 239 million.

	•		Depreciation for the year is at Rs 598 million as against Rs 459 million for FY02.

	•		Net income at Rs 3.5 billion (20% of total revenues) as against Rs 4.9 billion (30% of total revenues) in FY02. This translates to a diluted EPS of Rs 46.16 as against Rs 64.62 in FY02.

•	During the year, the company made the following major investments –

	•	Rs 592 million in Aurigene Discovery Technologies, bringing the total investments to Rs 703 million,

	•	Rs 567 million for the acquisition of BMS and it’s subsidiary Meridian in the UK.

•	During the year, the Company incurred a normal capital expenditure of Rs 1.5 billion.

•	As at March 31, 2003, the cash and cash equivalents were at Rs 7.3 billion or $ 153 million. On the Receivables front, there has been an improvement in the number of days of sales outstanding to 73 days from 84 as at the end of March 2002.

•	Inventory Turnover in days of revenues increased to 56 days from 48 as at the end of March 2002.

All figures in millions, except EPS
All dollar figures based on convenience translation rate of 1USD = Rs 47.53
Q4 FY03 Financial Snapshot


	Q4 FY03									Q4 FY02

	($)			(Rs.)			%			($)			(Rs.)			%			Growth %

Net Product Revenues		90			4,262			100			81			3,841			98			11
Services		0			0			0			2			89			2			(100	)
Total Revenues		90			4,262			100			83			3,930			100			8
Cost of revenues		33			1,557			37			35			1,668			42			(7	)
Gross profit		57			2,705			63			48			2,262			58			20
Selling, General & Administrative Expenses		33			1,566			37			21			990			25			58
R&D Expenses		10			485			11			6			284			7			71
Amortization Expenses		2			94			2			3			155			4			(39	)
Total operating expenses		45			2,145			50			30			1,429			36			50
Operating income		12			560			13			18			833			22			(33	)
Equity in loss of affiliates		0			10			0			0			15			0			(33	)
Other expenses/(income) net		(4	)		(176	)		(4	)		(3	)		(123	)		(3	)		43
Income before income taxes and minority interest		15			726			17			20			941			25			(23	)
Income tax (benefit)/expense		1			48			1			(2	)		(99	)		(2	)	NA
Minority interest		0			3			0			0			0			0			—
Net income		14			675			16			22			1,040			26			(35	)
Exchange rate					47.53									47.53


Revenue Mix by Geography								*Figures in millions)*

			Q4						Q4
	Q4		FY03,				Q4		FY02,				Growth
	FY03, $		INR		as a %		FY02, $		INR		as a %		%

India		28		1,316		31		31		1,453		37		(9	)
North America		27		1,291		30		28		1,330		34		(3	)
Europe		10		458		11		9		419		11		9
Russia		9		447		10		7		322		8		39
Others		16		750		18		8		406		10		85

TOTAL		90		4,262		100		83		3,930		100		8


{Revenue Mix by Geography									*(Figures in millions)*

				Q4						Q4
		Q4		FY03,				Q4		FY02,				Growth
		FY03, $		INR		as a %		FY02, $		INR		as a %		%

APIs			29		1,375		32		25		1,187		30		16
	India		7		333		24		7		319		27		4
	International		22		1,042		76		18		868		73		20
Branded Formulations			33		1,555		36		32		1,503		38		3
	India		19		878		56		22		1,019		68		(14	)
	International		14		677		44		10		484		32		40
Generics			25		1,196		28		21		994		25		20
Emerging Business			2		90		3		2		116		3		(23	)
Others			1		46		1		3		130		4		(64	)

Total			90		4,262		100		83		3,930		100		8

Q4 FY03 - Business Highlights

	•		Revenues at Rs 4.3 billion as against Rs 3.9 billion in Q4 FY02. YoY growth of 8%.

	•		Fluoxetine capsules 40mg revenues at Rs 434 million as against Rs 790 million in Q4 FY02, which included one-time marketing exclusivity revenues. Adjusting for fluoxetine in both the quarters, growth in overall revenues at 22% over Q4 FY02.

	•		Revenues outside India at Rs 2.9 billion as against Rs 2.5 billion in Q4 FY02. YoY growth of 19%, contributes 69% to total revenues as against 63% in Q4 FY02.

	•		Revenues in North America were at Rs 1.3 billion, a marginal decline of 3% over Q4 FY02. Growth in APIs by 29% and contribution from generic Tizanidine, launched in July 2002 offset the decline in revenues from fluoxetine over Q4 FY02.

	•		In Generics, Tizanidine tablets 2 & 4 mg, sustained its market share, contributing Rs 218 million to the revenues in North America. In the UK market, Omeprazole capsules continued to perform well, contributing Rs 179 million to the revenues.

	•		In Branded Formulations, revenues outside India were at Rs 677 million, an increase of 40% over FY02. The growth was primarily driven by the performance of the CIS markets. Revenues in Russia grew by 37% to Rs 441 million.

	•		In Branded Formulations, revenues in India were at Rs 878 million, a decline of 14% over Q4 FY02. During the quarter, the growth was impacted on account of lower off take by the trade due to the uncertainty over implementation of Value Added Tax system announced by the Government of India in the month of March.

	•		R&D spend at Rs 485 million or 11% of total revenues was exceptionally high primarily on account of bunching up of bio-study expenses.

	•		SG&A expenses were at Rs 1,566 million or 37% of total revenues. On a sequential basis, the expenses were higher on account of year-end employee cost related provision of Rs 102 million and increase in legal and consultancy expenses of Rs 67 million.

For further queries, please contact the IR team at:


US/Europe		Asia Pacific
Artie Rokkam		Nikhil Shah
Mail: artie@drreddys.com		Mail: nikhilshah@drreddys.com
Ph: +1-201-760-2880 X 211		Ph: +91-40-55511532

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	Dr. Reddy’s Laboratories Limited

		(Registrant)

Date: June 9, 2003		By:	/s/ Santosh Kumar Nair

			(Signature)*
		Santosh Kumar Nair
		Company Secretary

* Print the name and title of the signing officer under his signature.