Zydus Lifesciences Limited Financial Performance for Q1 FY25
Ahmedabad, India Zydus Lifesciences Limited announced its unaudited consolidated financial results for the first quarter ended June 30th, 2024.
| Q1 FY25 Consolidated Financial Results |
| Rs. mn | Q1
FY25 |
Q1
FY24 |
% Gr. YoY |
Q4
FY24 |
% Gr. QoQ |
| Revenue from operations | 62,075 | 51,396 | 20.8% | 55,338 | 12.2% |
| EBITDA | 20,840 | 15,053 | 38.4% | 16,305 | 27.8% |
| EBITDA margin (%) | 33.6% | 29.3% | 29.5% | ||
| PBT | 18,997 | 13,292 | 42.9% | 15,470 | 22.8% |
| Net Profit | 14,199 | 10,869 | 30.6% | 11,823 | 20.1% |
| Q1 FY25 Key Financial Highlights |
- Revenue from operations at Rs. 62,075 mn, up 21% YoY.
- Research & Development (R&D) investments for the quarter stood at Rs. 3,925 mn (6.3% of revenues).
- EBITDA for the quarter was Rs. 20,840 mn, up 38% YoY. EBITDA margin for the quarter stood at 33.6% which is an improvement of 430 bps on a YoY basis.
- Net Profit for the quarter was Rs. 14,199 mn, up 31% YoY.
- Capex (organic) for the quarter was Rs. 3,014 mn.
| Q1 FY25 Business-wise Sales Performance (Consolidated) |
| Rs. mn | Q1
FY25 |
Q1
FY24 |
% Gr. YoY |
Q4
FY24 |
% Gr. QoQ |
| India Geography: | 22,124 | 19,206 | 15.2% | 21,561 | 2.6% |
| Formulations | 13,758 | 12,270 | 12.1% | 13,806 | -0.3% |
| Consumer Wellness | 8,366 | 6,936 | 20.6% | 7,755 | 7.9% |
| US Formulations | 30,929 | 24,541 | 26.0% | 25,235 | 22.6% |
| International Mkt. Formulations | 5,309 | 4,893 | 8.5% | 4,960 | 7.0% |
| APIs | 1,415 | 1,389 | 1.9% | 1,436 | -1.5% |
| Alliances & Others | 688 | 499 | 37.9% | 472 | 45.8% |
| Consolidated Revenues | 60,465 | 50,528 | 19.7% | 53,664 | 12.7% |
| Sustained growth momentum across our businesses along with enhanced profitability drove our strong Q1 performance. Execution success of our differentiated pipeline in the US and outperformance of our India Geography business were particularly noteworthy. With a focus on quality excellence, we will continue to align our processes and strengthen compliance. We are on course to achieve our growth aspirations for FY25 and are committed to investing in sustainable growth initiatives and innovative solutions for the future.
Dr. Sharvil Patel, Managing Director – Zydus Lifesciences Limited |
| We are pleased with our operational performance amid geopolitical turmoil resulting in supply chain challenges and inflationary pressures. Our key businesses performed well aided by agile supply chain which helped sustain profitability. While the quarter’s reported margins were impacted by one-off inventory related provisions, adjusted profitability remained above 20%. Progress on our Innovation efforts to build robust pipeline for the future has been on track. We remain committed on our pipeline execution to drive sustainable growth.
Dr. Sharvil Patel Managing Director, Zydus Lifesciences Limited
|
| We are pleased with our operational performance amid geopolitical turmoil resulting in supply chain challenges and inflationary pressures. Our key businesses performed well aided by agile supply chain which helped sustain profitability. While the quarter’s reported margins were impacted by one-off inventory related provisions, adjusted profitability remained above 20%. Progress on our Innovation efforts to build robust pipeline for the future has been on track. We remain committed on our pipeline execution to drive sustainable growth.
Dr. Sharvil Patel Managing Director, Zydus Lifesciences Limited
|
| Q1 FY25 Business Updates
|
India Geography
- Comprises of Formulations and Consumer Wellness businesses and accounted for 37% of consolidated revenues.
- Registered revenues of Rs. 22,124 mn, up 15% YoY.
Formulations business
- Registered revenues of Rs. 13,758 mn, up 12% y-o-y. The business accounted for 23% of consolidated revenues.
- Branded formulations business grew faster than the market with 13% y-o-y growth. Outpaced the market growth both in chronic and acute segments.
- Portfolio of pillar brands and innovation products registered strong volume growth, driving overall growth during the quarter.
- Launched 10 new products (incl. line extensions) with 3 first-in-India launches.
- Retained leadership position in the Nephrology segment while in the Oncology space, we remained the fastest growing Indian company.
- Outpaced IPM in key therapies of Cardiology, Gynecology, Derma, Respiratory, Anti-infectives and super specialty therapies of Oncology and Nephrology.
- Share of chronic portfolio has increased consistently over the years and stood at 41.3%, which is an improvement of 430 bps over the last 3 years (Source: IQVIA MAT June 2024 data).
Consumer Wellness business
- Registered revenues of Rs. 8,366 mn, up 21% YoY. The business accounted for 14% of consolidated revenues.
- The growth was broad-based and largely driven by 17% volume growth.
- Personal care segment, which comprises of Nycil® and EverYuthTM brands, continued to deliver robust performance with yet another quarter of strong double-digit growth.
- Food and nutrition segment witnessed recovery during the quarter and posted double-digit growth.
US formulations business
- Registered revenues of Rs. 30,929 mn, up 26% YoY and 23% QoQ. The business accounted for 51% of consolidated revenues.
- In constant currency terms, the business registered revenues of US$ 371 mn.
- Growth during the quarter was driven by new product launches and volume expansion in the base portfolio.
- Launched 7 new products during the quarter. New launches for the quarter include launch of the second 505(b)(2) product viz. ZituvimetTM in the area of metabolic disorder management and Mirabegron ER tablets.
- Filed 5 ANDAs and received approval for 6 new products (including 2 tentative approvals) during the quarter.
International Markets formulations business
- Registered revenues of Rs. 5,309 mn, up 9% YoY. The business accounted for 9% of consolidated revenues.
- Demand scenario remained strong across key markets during the quarter.
API business
- Registered revenues of Rs. 1,415 mn, up 2% YoY. The business accounted for 2% of consolidated revenues.
Alliances and Others
- Registered revenues of Rs. 688 mn, up 38% YoY. The business accounted for 1% of consolidated revenues.
| Updates on Innovation Pipeline
|
NCE: Saroglitazar Magnesium
- Completed patient recruitment for Phase II(b)/ III clinical trials for PBC indication and Phase II(b) clinical trials for Metabolic Dysfunction-Associated Steatohepatitis (MASH) indication for the US market.
NCE: Usnoflast
- Completed patient recruitment for Phase II clinical trials for Amyotrophic Lateral Sclerosis (ALS) indication.
Biotech Research
- Submitted marketing authorization application for one of the monoclonal antibodies (mAbs) to the Indian regulator.
- On the novel biologics front, initiated Phase I clinical trials in India for an anti-properdin molecule.
- Recently, in the month of July, 2024, received marketing approvals from the Mexican regulatory authority for two products viz. Bhava™ (a biosimilar of Bevacizumab) and Mamitra™ (a biosimilar of Trastuzumab).
505(b)(2) and Specialty initiatives
- Recently, in the month of July, 2024, received final approval for the third NDA viz. ZituvimetTM XR i.e. Sitagliptin and Metformin Hydrochloride ER tablets in the area of metabolic disorder management.
- With this approval, all three NDAs of Sitagliptin (base) and combination franchise are now approved through 505(b)(2) route.
- All the three NDAs have received first-cycle approval.
| Q1 FY25 Earnings Call Details
|
The Company will host its post results earnings call at 3:30 p.m. IST on 9th August, 2024 during which the leadership team will discuss the financial performance and address questions from the participants. A transcript of the conference call will be available at the Company’s website: https://www.zyduslife.com/investorzone
