Zydus Lifesciences September quarter profit rises almost 14%

Zydus Lifesciences Ltd., formerly known as Cadila Healthcare Ltd., reported its second-quarter results on Tuesday, November 12, which increased on a year-on-year basis on all parameters.

Zydus Life's net profit for the July to September period surged 13.7% year-on-year to ₹911 crore, compared to ₹801 crore reported in the same quarter last year.

For the quarter, topline increased 20% on-year from last year's to ₹5,237 crore. Zydus Life said the Research & Development (R&D) investments for the quarter stood at ₹480 crore, which is 9.2% of its revenues.

EBITDA or Earnings Before Interest, Tax, Depreciation and Amortisation rose 27.5% on-year to ₹1,461.4 crore. The same was ₹1,146 crore in the corresponding period of last year.

EBITDA margin for the reporting quarter expanded by 170 basis points to 27.9% from 26.2% last year.

For the US formulations business, Zydus Life registered revenues of ₹2,417 crore, up 30% y-o-y and down 22% q-o-q. The business accounted for 47% of consolidated revenues. In constant currency terms, the business registered revenues of $ 288 million.

The API business registered revenues of ₹119 crore, down 15% y-o-y. The business accounted for 2% of consolidated revenues.

The organic capex for the quarter stood at nearly ₹302 crore, while it was ₹603 crore for the half year.

Its net debt to equity ratio as of September 30, 2024 was -0.12 times, while net debt to EBITDA stood at -0.41 times at the end of September, 2024. The company's net cash (negative net debt) as on September 30, 2024 stood at ₹2,590.6 crore.

"Sustained growth momentum across our businesses along with enhanced profitability drove our strong Q2 performance. Execution success of our differentiated pipeline in the US and outperformance of our India Geography business were particularly noteworthy," said Dr. Sharvil Patel, Managing Director - Zydus Lifesciences.

Patel also said the company is on course to achieve its growth aspirations for FY25 and is committed to investing in sustainable growth initiatives and innovative solutions, keeping patient centricity at the core.

Following the Q2 earnings announcement, shares of Zydus Lifesciences Ltd. are trading 2.49% lower at ₹943.70. The stock has fallen 35% so far this year.