Zydus Lifesciences Limited on Tuesday posted Q2 profit for the financial year 2023-24 at Rs 800.70 crore, up 53.2 per cent in comparison to Rs 522.50 crore during the corresponding quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 4368.80 crore, up 9.1 per cent as against Rs 4005.50 crore during the second quarter of FY23. According to a CNBC TV18 poll, Zydus Lifesciences was expected to record Q2 profit at Rs 795 crore and the revenue for the quarter ended September 2023 was expected to come at Rs 4586 crore. The company EBITDA stood at Rs 1146.10 crore, up 41 per cent on-year. Zydus Lifesciences recorded its R&D investments for the quarter at Rs 322.50 crore, which is 7.4 per cent of the overall revenues.
“Our Q2FY24 result represents stable growth in our key businesses, as well as strong profitability. We are on track to meet our growth objectives for the year. Going ahead, differentiated launches in the US, in addition to a rebound in India business growth which was constrained by delayed seasonality, will be critical drivers. We anticipate sustained momentum in profitability and aim for EBITDA margins of more than 24 per cent in the current fiscal year,” said Dr Sharvil Patel, Managing Director, Zydus Lifesciences Limited.
Zydus Lifesciences Q2 performance across key markets
Zydus Lifesciences’ India business registered total revenue of Rs 1769.30 crore, up 5 per cent on-year and comprised of formulations as well as consumer wellness businesses, accounting for 42 per cent of consolidated revenues. The formulations business registered revenues of Rs 1334.10 crore, up 6 per cent on-year. Branded formulations business, it said, grew in high single digit adjusting for NLEM impact and was partly affected by delay in acute season. The consumer wellness business, meanwhile, registered revenues of Rs 435.20 crore, up 3 per cent on-year. Personal care segment, which comprises Nycil and EverYuth brands, registered robust growth driven by favorable seasons in many parts of the country, it said.
US formulations business registered revenues of Rs 1864.80 crore, up 9 per cent on-year and down 24 per cent QoQ. In constant currency terms, the business registered revenues of $225 million. The business launched 8 new products during the quarter and filed 4 ANDAs and received approval for 9 ANDAs during the quarter.
Emerging Markets (EM) and Europe formulations business recorded revenue at Rs 450.40 crore, up 17 per cent on-year. The business, it said, continued to deliver healthy growth with all major markets contributing to the growth during the quarter.
API business registered revenues of Rs 140.20 crore, up 26 per cent YoY. The business accounted for 3 per cent of consolidated revenues.
Alliances & Others category registered revenues of Rs 33.90 crore, down 32 per cent on-year and it accounted for 1 per cent of consolidated revenues.