Informist, Tuesday, Nov. 12, 2024

By Akshay V. Johnson

MUMBAI – Zydus Lifesciences Ltd. reported double-digit on-year growth in its consolidated net profit and revenue for the September quarter, but missed the Street's estimates. The growth was primarily driven by the company's US operations, which contributed 47% to the company's revenue during the quarter. Growth in these operations stood at 30%, albeit on a low base.

The company reported a consolidated net profit of INR 9.11 billion for Jul-Sept, up 13.8% on year. The company's on-year growth in consolidated net profit is the lowest in six quarters. The company's consolidated net revenue for the September quarter was INR 52.37 billion, up 19.9% from the year-ago quarter. The on-year growth in consolidated revenue is the highest in five quarters.

Analysts had estimated the company's consolidated net profit for the September quarter at INR 9.61 billion and consolidated revenue at INR 52.91 billion. Sequentially, the company's consolidated net profit fell 35.8% and the consolidated revenue was down 13.4%. The company's other income for the quarter was INR 682 million, up 26.3% on year.

For the September quarter, the company reported total expenses of INR 40.34 billion, up 18.1% from INR 34.16 billion in the year-ago quarter. Zydus Lifesciences reported other expenses of INR 14.70 billion, up 36.4% from INR 10.78 billion in the year-ago quarter. The cost of materials consumed in the September quarter was INR 10.67 billion, up 2.8% on year. For Jul-Sept, the company's employee benefit expense rose 16.8% on year to INR 8.79 billion and purchases of stock-in-trade grew 19.3% to INR 4.84 billion.

For Apr-Sept, the company reported a consolidated net profit of INR 23.31 billion, up 23.5% on year. The consolidated revenue for the period stood at INR 114.45 billion, up 20.4%.

The company's consolidated earnings before interest, tax, depreciation, and amortisation were INR 14.61 billion for the September quarter, up 27.5% from INR 11.46 billion in the year-ago quarter. The consolidated EBITDA margin was 27.9%, up 170 basis points from the year-ago quarter. For Apr-Sept, the company's EBITDA was INR 35.45 billion, up 34% on year, with an EBITDA margin of 31%.

In the September quarter, the company made capital expenditure of INR 3.02 billion, up 40% from the year-ago period. The company's research and development investments were INR 4.8 billion in the September quarter, accounting for 9.2% of the total revenue. As of Sept. 30, the company had net cash of INR 25.91 billion, up 58% on year.

Zydus Lifesciences' pharmaceutical segment revenue was INR 47.48 billion, up 21% on year. Revenue from the consumer products segment rose 12% on year to INR 4.90 billion.

The company's India formulation business revenue for the September quarter was INR 14.57 billion, up 9.2% on year. This segment accounted for 28% of the company's revenue in the September quarter. In this segment, Zydus Lifesciences grew faster than the market in the key therapies of cardiology, gastro-intestinal, respiratory, anti-infectives and oncology, the company said. The company's share in the chronic portfolio was 41.8%, up 400 bps over the last three years.

The consumer wellness business, which accounted for 10% of the company's consolidated revenue, saw a 12% on-year increase to INR 4.88 billion. Both the personal care segment and the food and nutrition segment drove the overall performance of the segment, the company said.

The company's US formulations business saw a 30% on-year increase to INR 24.17 billion. The company launched four products in this segment in the September quarter. It has filed eight abbreviated new drug applications and received approval for nine during the quarter. The segment accounted for 47% of the company's consolidated revenue for Jul-Sept. In constant currency terms, the segment registered revenue of $288 million.

The company's international market formulation business rose 20% on year to INR 5.39 billion. Zydus Lifesciences is focused on expanding its presence in select therapies across key markets by leveraging the global research and development portfolio of generics and speciality products, the company said. The segment accounted for 11% of the company's consolidated revenue for the September quarter. At 1458 IST, shares of the company were at INR 954.80 on the National Stock Exchange, down 1.3%. End

US$1 = INR 84.40

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

Edited by Avishek Dutta

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