Zydus Lifesciences Q2 Results: Profit Falls In Line With Estimates
Net profit dropped 83% over a year earlier to Rs 523 crore in the three months ended September.
Zydus Lifesciences Ltd.’s second-quarter after-tax profit dropped but was in line with estimates.
Net profit stood at Rs 523 crore in the quarter ended September, down 83% over a year earlier, according to an exchange filing by the Ahmedabad-based drugmaker. That compares with the Rs 545 crore consensus estimate of analysts tracked by Bloomberg.
Zydus Lifesciences Q2 FY23 Highlights (YoY)
Revenue up 10% at Rs 4,135 crore, against an estimate of Rs 4,057 crore.
Ebitda was down 9% at Rs 815 crore, against an estimate of Rs 859 crore.
The margin stood at 19.7% compared to an estimate of 21.2%.
Other Highlights (YoY)
India contributed 43% of the total revenue for the quarter. Total India revenue grew by 6%. Excluding sales of Covid-19-related portfolio, the business grew 11%.
Revenue from India's formulation business rose 4% (including Covid), while that from the consumer wellness segment rose 12%.
Revenue from North American formulation sales rose by 16%, contributing to 43% of total sales. The company filed three ANDAs and received approval for 15 new products, including two tentative approvals, during the quarter. It also launched 10 new products.
Emerging markets formulation sales, which make up 8% of the revenue for the quarter, rose 24%.
Europe's formulations revenue was down 11%. This makes up 1% of the revenue for the quarter.
Sales of active pharmaceutical ingredients fell by 17%. This contributes to 3% of the revenue.
Research and development investments for the quarter stood at Rs 253 crore, which was 6.1% of the revenue.
New launches, including gRevlimid, aided U.S. growth while India formulations continued to deliver double-digit growth, excluding Covid-related revenues, Sharvil Patel, managing director at Zydus Lifesciences, said in the exchange filing.
"We expect to improve our profitability steadily going ahead, and remain on track to deliver 20% plus Ebitda margins for the current fiscal."
Updates On U.S. FDA Inspections Of Facilities
The U.S. FDA issued an Establishment Inspection Report with Voluntary Action Indicated status to Moraiya formulations facility indicating the closure of inspection.
The U.S. FDA inspected the animal health formulations facility located in Ahmedabad SEZ between Sept. 23-29, 2022, which concluded with two Form 483 observations.
Patel said that they were delighted with the resolution of regulatory issues at Moraiya.
Shares of Zydus Lifesciences were trading 1.19% lower after the results were announced, compared with a 1.72% rise in the benchmark S&P BSE Sensex at 11:58 a.m.