Discover the secrets behind Zydus Lifesciences’ remarkable 26% profit growth in the latest quarter! Get exclusive insights into their strategic moves, revenue drivers, and market performance. Don’t miss out on this insider scoop!
Financial Performance Highlights
Zydus Lifesciences had some great news to share on February 9th – they saw a whopping 26 percent increase in their overall net profit for the last quarter of the financial year 2023-2024, reaching Rs 789.6 crore. That’s quite a leap from the Rs 622.9 crore they made during the same period the previous year. Their revenue from operations also saw a rise, hitting Rs 4505.2 crore, which is 5.8 percent higher compared to last fiscal year.
Board Approves Share Buyback
The company’s board gave the thumbs up for a buyback of 57.9 lakh shares worth Rs 600 crore, with each share priced at Rs 1,005, using the tender offer route.
Based in Ahmedabad, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) were reported at Rs 1,102 crore, up from Rs 956 crore in the same period last year. The EBITDA margin also saw an uptick, reaching 24.4 percent compared to 22.5 percent last year. Dr. Sharvil Patel, the Managing Director of Zydus Lifesciences Limited, expressed optimism about their growth prospects, highlighting their unique portfolio in the US and the strong performance of key brands.
The company shared that total revenues saw a 6 percent year-on-year growth, driven largely by their India and EM&EU formulations businesses. Their India formulations business saw significant double-digit growth thanks to increased volume and new product launches.
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Investments in Capital and Research
Zydus Lifesciences invested Rs 213.7 crore in organic capital expenditure during the quarter. Additionally, they allocated Rs 314.6 crore for research and development (R&D), which accounted for 7 percent of their revenues in the October-December quarter.
In terms of US revenue, they reported $221 million, a slight decrease from both the previous quarter and the same period last year. However, their base business profitability in the US improved due to steady volume growth and new product launches over the past year. The company introduced 11 new products in the US during the quarter.
Their emerging markets also saw a positive trend, with revenues reaching Rs. 49.37 crore, marking a 31 percent year-on-year increase. This segment accounted for 11 percent of their consolidated revenues, with robust double-digit growth seen in major markets across the Asia Pacific region and Africa.
Challenges in API Business
However, their Active Pharmaceutical Ingredients (API) business reported a decline in revenues, down 24 percent year-on-year, and accounting for 3 percent of consolidated revenues but overall, Zydus Lifesciences seems to be on a path of growth and innovation, with strategic investments and product launches driving their success in various markets.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and Zydus Lifesciences have contributed to the above report