Zydus Lifesciences Limited has announced the financial results for the period Q3 FY24. The company has posted a 26% growth in its consolidated net profit at Rs 789.6 crore during Q3 FY24 compared to Rs 622.9 crore during Q3 FY23.  Zydus posted Rs 4,505.2 crore worth of revenue from operations, which grew 5.8% against the year-ago period.

The company’s board approved buyback of 57.9 lakh shares worth Rs 600 crore at Rs 1,005 per share via tender offer route. Zydus’s revenue growth was led by India and EU formulations businesses in addition to that in the emerging markets.

"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," said Dr. Sharvil Patel, Managing Director, Zydus Lifesciences Limited.

Q3 FY24 Business Updates

India Geography

• Comprises of Formulations as well as Consumer Wellness businesses and accounted for 42% of consolidated revenues.

• Registered revenues of Rs. 18,247 mn, up 11% y-o-y.

Formulations business

• Registered revenues of Rs. 14,273 mn, up 16% y-o-y. The business accounted for 33% of consolidated revenues.

• Branded formulations business grew faster with a growth of 17% y-o-y.

• Portfolio of key pillar brands and innovation products registered strong volume growth.

• Gained ranking in cardiac and anti-infective therapies and registered improvement in market share in anti-diabetic and anti-infective therapies

(Source: IQVIA Oct – Dec 23 data).

• On the super specialty front, retained leadership position in the nephrology segment while in the oncology space, remained the fastest growing company.

• Chronic portfolio grew faster than the market with a growth of 12%, compared with IPM growth of 11%. Share of chronic portfolio has increased by 136 basis points in CY23 to 41% (Source: IQVIA MAT December 2023 data).

Consumer Wellness business

• Registered revenues of Rs. 397.4 crore, down 3 % y-o-y. Consumer Wellness business accounted for 9% of consolidated revenues.

• Personal care segment, which comprises of Nycil and EverYuth brands, registered yet another quarter of strong growth.

US formulations business

• Registered revenues of Rs. 1842.7 crore, down 4% y-o-y and 1% q-o-q. The business accounted for 43% of consolidated revenues.

• In constant currency terms, the business registered revenues of US$ 221 mn.

• 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.

• Launched 11 new products during the quarter.

• New launches include launch of our first 505(b)(2) product Zituvio and 2 transdermal products.

• Filed 12 ANDAs and received approval for 6 ANDAs during the quarter.

Emerging Markets (EM) and Europe formulations business

• Registered revenues of Rs. 4,937 mn, up 31% YoY. The business accounted for 11% of consolidated revenues.

• All major markets in the Asia Pacific region and Africa registered robust double-digit growth during the quarter.

• Demand scenario remained strong in Europe while in Mexico, the business continued to deliver double digit growth.

API business

• Registered revenues of Rs. 143.1 crore, down 24% y-o-y. The business accounted for 3% of consolidated revenues.

Alliances & Others

• Registered revenues of Rs. 39.5 crore, up 59% y-o-y. The business accounted for 1% of consolidated revenues.