Zydus Lifesciences reported 26.76% jump in consolidated net profit to Rs 789.6 crore in Q3 FY24 as compared with Rs 622.9 crore in Q3 FY23.
Revenue from operations increased 5.83% to Rs 4,505.2 crore during the quarter as compared with Rs 4,257.1 crore posted in corresponding quarter last year.Profit before tax jumped 18.64% YoY to Rs 925.5 crore in Q3 FY24.
EBITDA stood at Rs 1,102.4 crore, registering the growth of 15% as compared with Rs 956 crore posted in same quarter last year. EBITD margin 24.5% in Q3 FY24 as against 22.5% in Q3 FY23.
Research & Development (R&D) investments for the quarter stood at Rs 314.6 crore in Q3 FY24, up by 27.3% as compared with Rs 344.5 crore posted in Q3 FY23 (7.0% of revenues). Capex (organic) for the quarter was at Rs 213.7 crore in Q2 FY24.
Revenue from formulations business stood at Rs 1,427.3 crore in Q3 FY24, up by 16% YoY. Branded formulations business grew faster with a growth of 17% YoY. The business accounted for 33% of consolidated revenues.
Revenue from US Formulation business stood at Rs 1,842.7 crore in Q3 FY24, down 4% YoY and 1 % QoQ. In constant currency terms, the business registered revenues of $221 million.
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The base business displayed robust momentum with sustained volume expansion, well supported by new product launches including some differentiated launches which helped in profitability improvement. The business accounted for 43% of consolidated revenues.
Emerging Markets (EM) and Europe formulations business registered revenues of Rs 493.7 crore, up 31% YoY The business accounted for 11% of consolidated revenues.
All major markets in the Asia Pacific region and Africa registered robust doubledigit growth during the quarter, while demand scenario remained strong in Europe while in Mexico, the business continued to deliver double digit growth.
Revenue from API Business declined 24% YoY to Rs 1,43.1 crore in Q3 FY24. The business accounted for 3% of consolidated revenues.
Revenue from alliances & others declined 59% YoY to Rs 39.5 crore in Q3 FY24. The business accounted for 1% of consolidated revenues.
The company has filed 12 ANDAs and received approval for 6 ANDAs. It has launched 11 new products.
Sharvil Patel, managing director, said, We are pleased with our Q3 FY24 performance, particularly with a strong recovery in the domestic formulations business and a resilient US base business. Importantly, our journey of sustained profitability improvement continues and we hope to sustain the same. 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.
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.
Meanwhile the company said that its board has approved a share buyback of upto Rs 600 crore at a price of Rs 1,005 per equity share through tender offer route, on a proportionate basis.
The buyback price fixed at Rs 1,005 per equity share, representing a 25.34% premium to Thursdays closing price of Rs 801.85 on the BSE.
The company will buyback up to 59.70 lakh equity shares, representing 0.59% of the total paid-up equity shares of the company.
The company has fixed 23 February 2024 as record date for the purpose of determining the entitlement.
Meanwhile, the company has received tentative approval from the United States Food and Drug Administration (USFDA) to manufacture and market Dexamethasone Tablets USP, 1 mg.
Dexamethasone is used to treat conditions such as arthritis, blood/hormone disorders, allergic reactions, skin diseases, eye problems, breathing problems, bowel disorders, cancer, and immune system disorders. The product will be manufactured at the groups formulation manufacturing facility at Baddi, Himachal Pradesh.
Zydus Lifesciences is a discovery-driven, global lifesciences company that discovers, develops, manufactures, and markets a broad range of healthcare therapies.
The scrip declined 1.31% to Rs 791.35 on the BSE. It also hit an all-time high at Rs 821.30 on intraday today.
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