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EquityWireEarnings Review: Zydus Jan-Mar consol PAT falls 1%, misses analyst estimate
Earnings Review

Zydus Jan-Mar consol PAT falls 1%, misses analyst estimate

This story was originally published at 20:26 IST on 20 May 2025
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Informist, Tuesday, May 20, 2025

 

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--Zydus Life Jan-Mar consol net profit INR 11.71 bln 
--Analysts saw Zydus Life Jan-Mar consol net profit INR 13.73 bln 
--Zydus Life Jan-Mar consol net profit INR 11.71 bln vs INR 11.82 bln yr ago 
--Zydus Life Jan-Mar consol revenue INR 65.28 bln vs INR 55.34 bln year ago 
--Zydus Life to pay INR 11 per share final dividend 
--Zydus Life FY25 consol net profit INR 45.26 bln vs INR 38.60 bln year ago 
--Zydus Life FY25 consol revenue INR 232.42 bln vs INR 195.47 bln year ago 
--Zydus Life Jan-Mar pharmaceuticals revenue INR 56.17 bln vs INR 47.54 bln 
--Zydus Life Jan-Mar consumer products revenue INR 9.11 bln vs INR 7.80 bln 
--Zydus Life Jan-Mar one-time cost of INR 2.20 bln 
--Zydus Life board OKs appointment of Tushar Shroff as CFO effective Sept 1 
--Zydus Life Jan-Mar consol EBITDA INR 21.26 bln vs INR 16.31 bln year ago 
--Zydus Life Jan-Mar consol EBITDA margin 32.6% vs 29.5% year ago 
--Zydus Life Jan-Mar India formulation sales INR 15.39 bln vs INR 13.91 bln 
--Zydus Life Jan-Mar India wellness sales INR 9.08 bln vs INR 7.76 bln 
--Zydus Life Jan-Mar US formulation sales INR 31.31 bln vs INR 25.24 bln 
--Zydus Life Jan-Mar intl formulation sales INR 5.55 bln vs INR 4.96 bln 
--Zydus Life Jan-Mar active pharmaceuticals ingredient revenue INR 1.29 bln 
--Zydus Life Jan-Mar active pharmaceuticals ingredient sales down 10.2% YoY 
--Zydus Life Jan-Mar India ops sales INR 24.48 bln vs INR 21.67 bln year ago 
--Zydus Life: India formulations branded ops sales up 11% on year in Jan-Mar 
--Zydus Life: India formulations secondary sales up 10% on year in Jan-Mar 
--Zydus Life Jan-Mar US formulation sales up on higher volumes, new launches
 

 

MUMBAI – Zydus Lifescinces Ltd. posted nearly 1% on year decline in consolidated net profit for the March quarter to INR 11.71 billion , missing analysts expectations of INR 13.73 billion. The fall in the company's profit after tax was due to a jump of 31% in tax outgo to INR 4.23 billion and a one time cost of INR 2.20 billion. However, the company reported a double digit growth in its Jan-Mar sales on year backed by 24% increase in US sales which was driven by volume expansion and new product launches. 

 

The company's top line in Jan-Mar grew nearly 18% year on year to INR 65.28 billion while it rose 24% sequentially. The company's research and development investments for the reporting quarter stood at INR 4.8 billion, which is 7.4% of the revenue. The Indian pharmaceutical major's earnings before interest, taxes, depreciation, and amortisation inreased 30% on year in the latest quarter to 21.26 billion. The EBITDA margin improved by 310 basis points on year to 32.6% for Jan-Mar. 

 

The company's US fomrulations sales were up over 24% on year on higher volumes and new product launches, followed by International formulation sales and India formulation sales that grew 12% and 11%, respectively.

 

The company incurred a one-time cost of INR 2.20 billion in the March quarter. This includes INR 1.4 billion incurred due to impairment of goodwill related to the company's business in Brazil and INR 846 million related to impairment of a product related intangible held by Zydus Worldwide DMCC, a wholly owned subsidiary of the company. 

 

The pharma major's net profit for FY25 grew 18% from the previous year to INR 45.26 billion. The conslidated net revenue for the year-ended March, too, recorded a nearly 19% rise to INR 232.42 billion. 

 

India formulations sales for Jan-Mar grew 11% on year to INR 15.39 billion driven by high uptick in pillar brands and innovation products. Consumer wellness sales went up 17% on year to INR 9.08 billion, largely driven by strong volume growth, the company said in its investor presentation. The personal care segment saw a double digit growth due to a higher consumer traction. 

 

US formulation sales accounted for 50% of the company's overall sales as it grew sequentially in all four quarters throughout the year driven by volume growth and new product launches, it said. The revenue from US formulations business rose 24% year on year and 30% on quarter to INR 31.31 billion. Zydus Lifesciences recieved approval for 24 new products including five tentative approvals for the 27 abbreviated new drug applications in FY25. It registered 17 new product launches in the generics segment and three brands in the speciality segment.

 

The board members of Zydus Lifescinces approved the appointment of Tushar Shroff as its Chief Financial Officer effective Sept. 1. The company said that it will pay a final dividend of INR 11 per equity share, approval for which could be granted by shareholders during Zydus Lifesciences' annual general meeting on Aug. 12.  More

 

The company's revenue from the pharmaceutical division rose over 18% to INR 56.17 billion and sales from the consumer products segment jumped to INR 9.11 billion from INR 7.80 billion from the year ago period. 

 

The international market formulations sales' rose nearly 12% on year to INR 5.55 billion. The growth was driven by a strong demand across geographies. 

 

The only segment that saw a fall was the active pharmaceuticals ingredient. Sales of active pharmaceuticals ingredients segment declined over 10% to INR 1.29 billion. Sales in India, which houses formulation and consumer wellness business, rose 13% on year to INR 24.48 billion. Within India, branded formulations sales rose 11% on year, driven by an uptick in pillar brands and innovation products. Its secondary sales in India rose 10% on year, growing faster than the market. End

 

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

 

Edited by Akul Nishant Akhoury

 

 

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