Zydus Lifesciences Limited on Friday reported its third quarter earnings for the financial year 2023-24 with profit at Rs 789.60 crore, up 26.8 per cent in comparison to Rs 622.90 crore during the third quarter of FY23. It posted revenue from operations at Rs 4505.20 crore, up 5.8 per cent as against Rs 4257.10 crore during the corresponding quarter of previous year. The company EBITDA stood at Rs 1102 crore, up 15 per cent on-year. Zydus Lifesciences recorded R&D investments for the quarter at Rs 314.60 crore, which is 7 per ceny of the revenue.
The Board also approved the proposal to buyback equity shares for an aggregate amount upto Rs 600 crore (excluding tax and other charges), being 0.59 per cent of total outstanding equity shares at a price of Rs 1005 per share (25 per cent premium to closing price of 8th February, 2024).
“We are pleased with our Q3 FY24 performance, particularly with a strong recovery in the domestic formulations business and a resilient US base business. Importantly, our journey of sustained profitability improvement continues and we hope to sustain the same. We are optimistic about our growth prospects driven by a differentiated portfolio in the US, continued performance of key brands, well supported by a robust execution engine. We remain on track to end the fiscal year 2024 with a healthy double-digit revenue growth and expect to improve EBITDA margins to 27 per cent plus levels,” said Dr Sharvil Patel, Managing Director, Zydus Lifesciences Limited.
Zydus Lifesciences Q3 performance across businesses
The company’s India business, which comprises formulations and consumer wellness businesses, registered revenue of Rs 1824.70 crore, up 11 per cent YoY. The formulations business recorded revenue at Rs 1427.30 crore, up 16 per cent on-year. The business accounted for 33 per cent of consolidated revenue. The branded formulations business grew faster with a growth of 17 per cent YoY. Portfolio of key pillar brands and innovation products, it said, registered strong volume growth. On the super specialty front, the company retained leadership position in the nephrology segment while in the oncology space, it remained the fastest growing company. Chronic portfolio grew faster than the market with a growth of 12 per cent, compared with IPM growth of 11 per cent. The consumer wellness business, meanwhile, recorded revenue of Rs 397.40 crore, down 3 per cent YoY. Personal care segment, which comprises Nycil and EverYuth brands, registered yet another quarter of strong growth, it added.
The US formulations business registered revenue of Rs 1842.70 crore, down 4 per cent on-year. In constant currency terms, the business registered revenues of $221 million. Zydus Lifesciences launched 11 new products during the quarter and filed 12 ANDAs and received approval for 6 ANDAs during the quarter.
The Emerging Markets (EM) and Europe formulations business registered revenue of Rs 493.70 crore, up 31 per cent YoY. All major markets in the Asia Pacific region and Africa, it added, registered double digit growth during the quarter.
The company’s API business reported revenue at Rs 143.10 crore, down 24 per cent YoY and it accounted for 3 per cent of the consolidated revenue.
Alliances & Others registered revenue of Rs 39.50 crore, up 59 per ceny on-year and it accounted of 1 per cent of consolidated revenue.