Zydus Lifesciences Q3 Results: Profit Rises 27%, Beats Estimates
The pharmaceutical firm's revenue rose 6% to Rs 4,505 crore in the December quarter.
Zydus Lifesciences Ltd.'s third-quarter profit rose beating analysts' estimates.
The pharmaceutical firm's consolidated net profit rose 27% year-on-year to Rs 790 crore in the December quarter, according to an exchange filing on Friday. That compares with the Rs 689-crore consensus estimate of analysts tracked by Bloomberg.
Zydus Q3 FY24 Earnings Highlights (Consolidated, YoY)
Revenue up 6% at Rs 4,505 crore (Bloomberg estimate: Rs 4,489 crore).
Ebitda was up 15% at Rs 1,102 crore (Bloomberg estimate: Rs 1,041 crore).
Margin expands to 24.46% vs 22.45% (Bloomberg estimate: 23.2%).
"We are pleased with our Q3 FY24 performance, particularly with a strong recovery in the domestic formulations business and a resilient US base business," Managing Director Sharvil Patel said. "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%-plus levels."
Other Highlights (YoY)
India contributed 42% of the total revenue for the quarter. Total India revenue grew 11%.
Revenue from India formulation business rose 16%, while that from the consumer wellness segment fell 4%.
Revenue from the North American formulation sales declined 4% to Rs 1,843 crore, contributing to 43% of total sales. The company filed 12 abbreviated new drug applications and received approval for six new products, during the quarter. It also launched 11 new products.
Emerging markets and Europe formulation sales, which make up 11% of the revenue for the quarter, rose 31%.
Sales of active pharmaceutical ingredients fell 24%. This contributes to 3% of the revenue.
Research and development investments for the quarter stood at Rs 315 crore, which was 7% of the revenue.
Capital expenditure for the quarter was at Rs 214 crore.
Buyback
The board of directors approved the proposal to buyback equity shares for an aggregate amount up to Rs 600 crore, excluding tax and other charges, constituting 0.59% of total outstanding equity shares.
The buyback price has been decided at Rs 1,005 per share, which is at a 25% premium to closing price of Feb. 8. The record date for the buyback has been set at Feb. 23.
Shares of Zydus were trading 1.07% lower at Rs 793.25 apiece on the BSE after the results were announced, compared to a 0.09% rise in the benchmark Sensex at 1:32 p.m.
