Zydus Lifesciences net profit up 14% on strong India, US formulations biz

Ahmedabad-based Zydus Lifesciences on Tuesday reported a 13.8 per cent year-on-year (Y-o-Y) increase in consolidated net profit for the September quarter (Q2 FY25), reaching Rs 911.2 crore, up from Rs 800.7 crore recorded in the same quarter last year.

 

The company’s revenue from operations increased to Rs 5,237 crore in Q2 FY25, a 20 per cent Y-o-Y rise from Rs 4,368 crore reported in Q2 FY24.

 

On a consolidated basis, the company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) grew by 27.5 per cent Y-o-Y to Rs 1,461.4 crore in the September quarter, with Ebitda margins at 27.9 per cent, up from 26.2 per cent in Q2 FY24.   

 

The growth is attributed to strong performances across domestic and international formulations, and double-digit growth in the consumer wellness business.

 

Commenting on the results, Sharvil Patel, managing director, Zydus Lifesciences, said that sustained growth momentum across businesses, along with enhanced profitability, drove the company’s strong Q2 performance. “Execution success of our differentiated pipeline in the US and outperformance of our India geography business were particularly noteworthy," he added.

 

For this quarter, the India formulations business reported a 10 per cent Y-o-Y rise, reaching Rs 1,457 crore, with 12 new products launched this quarter.

 

The company stated that its branded formulations business outperformed the market in both chronic and acute segments, driven by strong volume growth of core and innovative products.

 

Zydus also reported a 29.6 per cent Y-o-Y growth in its sales in the United States (US) formulations market, due to base business volume expansion and four new launches in Q2. This includes an exclusive licensing and supply agreement with Viwit Pharmaceuticals for two gadolinium-based Magnetic Resonance Imaging (MRI) injectable contrast agents.

 

The Consumer Wellness business contributed 10 per cent to consolidated revenues, growing 12 per cent Y-o-Y to Rs 487.5 crore, driven by a volume increase. The company saw double-digit growth in both personal care and food and nutrition segments, boosting overall performance.

 

In Q2 FY25, Zydus’s international markets formulations business grew by 20 per cent Y-o-Y to Rs 538.9 crore, while its active pharmaceutical ingredients (API) business saw a 15 per cent Y-o-Y drop to Rs 119.4 crore.

 

“With a focus on quality excellence, we will continue to align our processes and strengthen compliance,” Patel added.

 

On Tuesday, Zydus Lifesciences shares fell by 1.90 per cent, closing at Rs 950.10 apiece on the Bombay Stock Exchange (BSE).