Zydus Lifesciences Q1 Results: Profit Falls 12%, But Beats Estimates
Zydus Lifesciences’ net profit stood at Rs 518 crore in the three months ended June, down 12% over the year earlier.
Zydus Lifesciences Ltd.’s first-quarter after-tax profit fell, but beat estimates.
Net profit of the Ahmedabad-based drugmaker stood at Rs 518 crore in the three months ended June 30, down 12% over the year earlier, according to its exchange filing. That compares with the Rs 483-crore consensus estimate of analysts tracked by Bloomberg.
Zydus Lifesciences Q1 FY23 Highlights (YoY)
Revenue up 2% to Rs 4,073 crore (Estimate: Rs 3,992 crore)
Ebitda down 14% at Rs 833 crore (Estimate: Rs 818 crore)
Margin at 20.5% vs 24.3%, in line with estimates
Earnings per share for both continuing and discontinued operations stood at Rs 5.06 per share against 5.74 a year ago. The estimate was at Rs 4.62 apiece.
The company reported an exceptional loss of Rs 3 crore this quarter pertaining to expenses related to cessation of operations at the manufacturing facility of its subsidiary, Zydus Wellness.
The company also disclosed that the U.S. FDA had inspected its Moraiya formulations facility from July 26 to Aug. 5 and issued four Form 483 observations. “None of the observations were related to data integrity,” it said in the filing.
Other Highlights (YoY)
India contributed to 46% of the total revenue for the quarter. Total India revenue fell 6%. Excluding sales of Covid-19-related portfolio, the business grew 12%.
Revenue from India's formulation business fell 17% (including Covid), while that from consumer wellness segment rose 18%.
Revenue from North American formulation sales rose 9%, contributing to 40% of total sales. The company filed eight ANDAs and received approval for seven new products (including one tentative approval) during the quarter. It also launched eight new products.
Emerging markets formulation sales, which makes up for 8% of the revenue for the quarter, rose 14%.
Europe formulations revenue was up 3%. This makes up for 2% of the revenue for the quarter.
Sales of active pharmaceutical ingredients fell 10%. This contributes to 3% of the revenue.
Research and development investments for the quarter stood at Rs 284 crore, which was 7% of the revenue.
The company’s net cash as on June 30 stood at Rs 563 crore.
Shares of Zydus Lifesciences were trading 1.22% higher after the results were announced compared with a 0.25% decline in the benchmark S&P BSE Sensex as of 1:30 pm.