Zydus Lifesciences net profit jumps 27% in Q3FY24, announced buyback

Zydus Lifesciences on Tuesday reported Rs 789.6 crore net profit in Q3FY24, a year-on-year (YoY) jump of 27% led by growth in India, Europe and emerging market formulation sales.

The Ahmedabad-based drug maker’s board approved the proposal to buyback equity shares for an aggregate

amount upto Rs. 600 crore excluding tax and other charges, being 0.59% of
total outstanding equity shares at a price of Rs. 1005 per share – 25% premium to
closing price of February 8, 2024.

On a quarter-on-quarter (QoQ) basis the net profit dropped 1.4%.

Revenue from operations rose 6% YoY to Rs 4505 crore in Q3FY24 compared to Rs 4257 crore in Q3FY23. On QoQ revenue grew 3%.

The earnings before interest, tax, depreciation and ammortisation (EBITDA) increased 15% YoY to Rs 1102 crore. On QoQ, EBITDA dropped 3.8%.
The EBITDA margins for Q3FY24 improved 200 basis points YoY to 24.5%.India sales rose 11% YoY to Rs 1825 crore in Q3FY24. The formulation business gained 16% to Rs 1427 crore, while consumer wellness sales declined 3.5% to Rs 397 crore. India contributes 42% of overall sales.

US formulation business that constitutes 43% declined 4.3% YoY to Rs 1843 crore. Emerging markets and Europe formulation business rose 30.5% YoY to Rs 493.7 crore.

The active pharmaceutical ingredient (API) business dropped 24% YoY to 143 crore.

The capital expansion for the quarter was Rs. 213.7 crore, while the research & development (R&D) investments for the quarter stood at Rs. 314.6 crore or 7% of revenues.

“We are optimistic about our growth prospects driven by a differentiated portfolio in the US, continued performance of key brands, well supported by a robust execution engine,” said Dr. Sharvil Patel, MD of Zydus.

“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,” Patel added.

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