Zydus Wellness Limited released its Q2 FY25 financial results, presenting a steady rise in revenue year-over-year but facing challenges in profitability on both a sequential and annual basis. This mixed performance has garnered attention from investors, with shares trading 1.87% lower at ₹1,918.70 on NSE as of 12:27 pm.
Key Financial Highlights (₹ in Crores)
Revenue from Operations
- Q2 FY25: ₹492.9 crore
- Q1 FY25: ₹841 crore (Quarter-over-Quarter decrease of 41.4%)
- Q2 FY24: ₹439.9 crore (Year-over-Year increase of 12.1%)
Net Profit
- Q2 FY25: ₹20.9 crore
- Q1 FY25: ₹147.7 crore (QoQ decrease of 85.8%)
- Q2 FY24: ₹5.9 crore (YoY increase of 254.2%)
Analysis
The company reported a strong year-over-year growth in both revenue and net profit, reflecting improved demand and operational performance. However, the sharp decline in revenue and net profit on a quarter-over-quarter basis indicates challenges, possibly due to rising costs or seasonal factors impacting profitability. Despite the YoY improvement in profitability, the QoQ contraction has led to cautious market sentiment around Zydus Wellness, with the stock experiencing a slight dip post-results.
Investors will be closely watching how the company addresses these challenges in the coming quarters to ensure sustained growth and profitability
