Zydus Lifesciences Q2 Results: Firm reports 53% YoY jump in net profit at Rs 801 crore

Zydus Lifesciences on Tuesday reported Rs 801 crore net profit in Q2FY24, a year-on-year (YoY) jump of 53% led by growth in India and US formulation sales.

On a quarter-on-quarter (QoQ) basis the net profit dropped 26%.

Revenue from operations rose 9.1% YoY to Rs 4369 crore in Q2FY24 compared to Rs 4006 crore in Q2FY23. On QoQ revenue declined 15%.

The earnings before interest, tax, depreciation and ammortisation (EBITDA) increased 40.6% YoY to Rs 1146 crore. On QoQ, EBITDA dropped 23.9%.
The EBITDA margins for Q2FY24 gained 580 basis points compared to 20.4% in Q2FY23.

India sales rose 4.8% YoY to Rs 1769 crore in Q2FY24. The formulation business gained 5.5% to Rs 1334 crore, while consumer wellness sales rose 3% to Rs 432 crore.

US formulation business rose 9.2% YoY to Rs 1865 crore. Emerging markets and Europe formulation business rose 17% YoY to Rs 450.4 crore.
The active pharmaceutical ingredient (API) business rose 25% YoY to 140 crore.

The capital expansion for the quarter was Rs. 216 crore.

"Going ahead, differentiated launches in the US, in addition to a rebound in India business growth which was constrained by delayed seasonality, will be critical drivers," said Dr. Sharvil Patel, MD of Zydus.

"We anticipate sustained momentum in profitability and aim for EBITDA margins of more than 24% in the current fiscal year," Patel added.