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Informist, Wednesday, Feb. 5, 2025

 

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--Analysts saw Zydus Life Oct-Dec consol net profit INR 9.23 bln 
--Zydus Life Oct-Dec consol net profit INR 10.24 bln vs INR 7.90 bln year ago 
--Zydus Life Oct-Dec consol revenue INR 52.69 bln vs INR 45.05 bln year ago 
--Zydus Life Apr-Dec consol net profit INR 33.55 bln vs INR 26.77 bln year ago 
--Zydus Life Apr-Dec consol revenue INR 167.14 bln vs INR 140.14 bln year ago 
--Zydus Life Oct-Dec pharmaceuticals revenue INR 48.10 bln vs INR 41.05 bln 
--Zydus Life Oct-Dec consumer products revenue INR 4.59 bln vs INR 4.00 bln 
--Zydus Life Oct-Dec consol EBITDA INR 13.88 bln vs INR 11.02 bln year ago 
--Zydus Life Oct-Dec consol EBITDA margin 26.3% vs 24.5% year ago 
--Zydus Life Oct-Dec India ops sales INR 19.47 bln vs INR 18.25 bln year ago 
--Zydus Life Oct-Dec India formulation sales INR 14.98 bln vs INR 14.27 bln 
--Zydus Life Oct-Dec India wellness sales INR 4.49 bln vs INR 3.97 bln yr ago 
--Zydus Life Oct-Dec US formulation sales INR 24.1 bln vs INR 18.4 bln yr ago 
--Zydus Life Oct-Dec intl formulation sales INR 5.7 bln vs INR 4.9 bln yr ago 
--Zydus Life Oct-Dec active pharmaceuticals ingredient revenue INR 1.70 bln 
--Zydus Life Oct-Dec active pharmaceuticals ingredient revenue up 19% on yr 

 

By Simran Rede

 

MUMBAI – Zydus Lifesciences Ltd. posted a higher-than-expected growth in both its top line and bottom line for the December quarter. The drugmaker reported a double-digit on-year rise in net profit for the reporting quarter, the fastest growth posted in four years among all the corresponding periods. "Our robust product portfolio execution in the US, market share gain in focused therapy segments and brands in India, and strategic leveraging of our global portfolio in international markets position us well for future growth," the company said in a press release.

 

The growth was primarily driven by the company's US operations, which contributed 47% to the company's revenue during the quarter. The company's consolidated net profit was up 30% on year at INR 10.24 billion, higher than the INR 9.23 billion estimated by analysts. Its consolidated revenue of INR 52.69 billion for the December quarter was up 17% from the year-ago quarter, and above the Street's estimate of INR 52.3 billion. This was the slowest on-year sales growth in three quarters. 

 

Following the result, the stock fell and hit an intraday low of INR 945 on the National Stock Exchange before turning slightly positive again. At 1432 IST, the stock was 0.2% higher at INR 975.80. Prior to the results, the stock was up 0.3% at INR 976.90.

 

For the first nine months of the current financial year, too, the growth figures were robust. For Apr-Dec, the company reported a consolidated net profit of INR 33.55 billion, up 25.3% from a year ago. The consolidated revenue for the period stood at INR 167.14 billion, up 19.3%.

 

The company's earnings before interest, tax, depreciation and amortisation were INR 13.88 billion for the December quarter, up 26% from INR 11.02 billion in the year-ago quarter. The EBITDA margin was 26.3%, up 180 basis points from the year-ago quarter. For Apr-Dec, the company's EBITDA was INR 49.33 billion, up 31% on year, with an EBITDA margin rising 270 bps to 29.5%.

 

Zydus Lifesciences' pharmaceutical segment revenue was INR 48.10 billion, up 17% on year. Revenue from the consumer products segment rose 15% on year to INR 4.59 billion.

 

The company's US formulations business saw a 31% on-year increase to INR 24.10 billion. The company launched five products in this segment in the December quarter and filed 10 abbreviated new drug applications and received approval for three new products. This segment accounted for 47% of the company's consolidated revenue for Oct-Dec. In constant currency terms, the segment registered revenue of $285 million.

 

The pharmaceuticals company's domestic business grew 6.7% in the latest quarter to INR 19.47 billion. Revenue from the company's India formulation business was INR 14.98 billion, up 5% on year, and accounted for 29% of the company's revenue. Growth in this segment was faster than the industry, with 8% on-year secondary sales growth. Its chronic segment outpaced the market growth, driving the overall performance of the business, the company said, adding that this vertical accounts for over 42% of sales, up 370 bps over the last three years.

 

The consumer wellness business, which accounted for 9% of the company's consolidated revenue, saw a 13% on-year growth to INR 4.49 billion and a 4.8% volume growth. The personal care segment witnessed strong demand and achieved robust double-digit growth, the company said. The international market formulation business grew 16% on year to INR 5.70 billion, contributing to 11% of revenue. This segment continued to deliver strong growth on the back of healthy demand across markets, the company said. The active pharmaceutical ingredient business grew 19% on year to INR 1.70 billion. This segment accounted for 3% of the company's consolidated revenue. Further, alliances and other business, accounting for just 1% of the consolidated revenue, fell 33% on year to INR 264 million.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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