Zydus Lifesciences reports impressive 53.2% rise in Q2 net profit

Indian pharmaceutical company Zydus Lifesciences posted robust financial results for the July-September quarter of the fiscal year 2023-2024.

Indian pharmaceutical company Zydus Lifesciences posted robust financial results for the July-September quarter of the fiscal year 2023-2024. The company reported a consolidated net profit of INR 800.7 crore, marking a significant 53.2% growth compared to the INR 522.5 crore it recorded a year ago. Total revenue for the quarter stood at INR 4,368.8 crore, a 5.6% increase from INR 4,134.7 crore in the previous fiscal year. The impressive growth in total revenues, up 9% year-on-year, was primarily driven by the company’s US, EM& EU formulations, and API (Active Pharmaceutical Ingredient) businesses.

Zydus Lifesciences reported EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of INR 1,146.1 crore, up from INR 815.3 crore in the same period of the previous year, with an EBITDA margin of 26.2%, indicating a substantial increase of 580 basis points year-on-year.

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In India, Zydus’ business selling well-known medicines grew by a good amount, even after considering the impact of government-regulated pricing. However, there was a bit of a slowdown due to certain factors. The growth came mainly from selling more medicines and introducing new ones. In the United States, Zydus did consistently well selling its medicines. They got help from medicines they were already selling, as well as the new ones they introduced. In that period, they launched eight new medicines in the US, applied for permission to sell four more, and got approval for nine new medicines.

In the July-September quarter, Zydus Life invested INR 216.2 crore in organic capital expenditures and allocated INR 322.5 crore, equivalent to 7.4% of its revenues, to research and development (R&D). Following these positive financial results, the company’s shares traded up by 2.88% to INR 601.70 on the National Stock Exchange (NSE).