Zydus Lifesciences on Friday posted its fiscal first quarter profit at Rs 1086.90 crore, up 109.7 per cent as against Rs 518.30 crore during the corresponding quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 5139.60 crore, up 29.6 per cent in comparison to Rs 3964.30 crore during the first quarter of financial year 2022-23. According to CNBC TV18 estimated, Zydus Lifesciences was expected to post a profit of Rs 880.7 crore for the quarter ended June 2023 and revenue during the period was expected to be at Rs 5075.8 crore.
The company EBITDA stood at Rs 1505.3 crore. Zydus Lifesciences posted a total income during the quarter at Rs 5175.60 crore, up 28.4 per cent as against Rs 4030.20 crore during the year-ago period. However, the total expenses during Q1FY24 came at Rs 3832.20 crore, up 14.5 per cent from Rs 3346.30 crore during the quarter ended June 2022. Meanwhile, the pharmaceutical company said that its R&D investments for the quarter stood at Rs 323.90 crore, which is 6.3 per cent of the revenue. Capex (organic) for the quarter was Rs 220.30 crore.
Zydus Lifesciences’ Q1 performance across key markets
The company’s India business comprises formulations and consumer wellness segments and accounted for 38 per cent of the consolidated revenues. The India business registered revenue of Rs 1920.60 crore, up 6 per cent on-year. The formulations business posted a revenue of Rs 1227 crore, up 9 per cent on-year. The branded business growth was 10 per cent YoY. The consumer wellness business, meanwhile, recorded a revenue of Rs 693.60 crore and the business accounted for 14 per cent of consolidated revenue. “Unseasonal rains during the first half of the quarter impacted the offtake of a key summer-oriented brand Glucon-D. However, the remaining portfolio posted near double digit growth,” it said.
Furthermore, the US formulations business registered a revenue of Rs 2454.10 crore, up 57 per cent YoY and it accounted for 48 per cent of the consolidated revenue. “Growth during the quarter was driven by new product launches and improvement in base business,” the company said. The segment filed for 4 ANDAs and received approval for 20 new products (including 3 tentative approvals) and also launched 4 new products during the quarter.
The emerging markets and Europe formulations business posted revenue at Rs 489.30 crore, up 30 per cent YoY and the business accounted for 10 per cent of the consolidated revenue.
“We are delighted to deliver strong performance during the quarter with broad based operational growth in our key businesses and a favourable product mix enhancing our profitability. Strong execution and volume offtake drove revenue ramp-up in the US, while the India branded formulations business. adjusting for NLEM impact delivered solid 12 per cent growth,” said Dr. Sharvil Patel, Managing Director, Zydus Lifesciences Limited.
He further added, “We remain reassured on achieving profitable growth aspirations for the fiscal year and thereby enhance stakeholder value. Our persistent commitment to maintaining high quality standards and pursuing innovation will boost our sustainable growth prospects.”