Zydus Life Q3 net profit surges 26% to Rs 789.6 crore

Zydus Lifesciences on February 9 reported a 26 percent growth in consolidated net profit at Rs 789.6 crore for the December quarter of the financial year 2023-2024.

The pharma company reported a profit of Rs 622.9 crore in the year-ago period. Revenue from operations came in at Rs 4505.2 crore, 5.8 percent higher than Rs  4257.1 crore last fiscal, the company said in an exchange filing.

The company's board approved buyback of 57.9 lakh shares worth Rs 600 crore at Rs 1,005 per share via tender offer route.

The Ahmedabad-based company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) at Rs 1,102 crore, up from Rs 956 in the year-ago period. The EBITDA margin was at 24.4 percent, up from 22.5 percent a year ago.

"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," said Dr. Sharvil Patel, Managing Director - Zydus Lifesciences Limited.

Total revenues grew 6 percent YoY, led by India and EM& EU formulations
businesses, the company said in a press statement. India formulations business delivered strong double digit growth on the back of healthy volume growth and new product launches.

The company reported capex (organic) for the quarter of Rs 213.7 crore. The company spent Rs 314.6 crore on research and development (R&D) which was 7 percent of revenues in the October-December quarter.

US revenue came in at $221 million, down against $225 million (QoQ) and $192.5 million in the same period a year ago. The US business profitability of base business improved on the back of sustained volume expansion and new product launches made over the last 12 months. The company launched 11 new products in US during the quarter.

Emerging markets registered revenues of Rs. 49.37 crore, up 31 percent YoY. The business accounted for 11 percent of consolidated revenues. All major markets in the Asia Pacific region and Africa registered robust double digit growth during the quarter, the company said.
Active Pharmaceutical Ingredients (API) reported revenues of Rs 143.1 crore, down 24 percent y-o-y. The business accounted for 3 percent of consolidated revenues.