Q4 Results: Zydus Lifesciences Revenues Soar By Over 31%, PAT At 296 Cr

Zydus Lifesciences on Thursday announced its earnings for the fourth quarter and full year FY23. The company's consolidated revenue recorded a major jump in Q4FY23 by 31.7 per cent year on year (YoY) to Rs 5,010 crore and by 14.1 per cent for FY23 to Rs 17,237 crore compared with Rs 3,805 crores in Q4FY22 and Rs 15,109 in FY22 respectively. 

The pharmaceutical company's Profit After Tax (PAT) dipped by 25.44 per cent YoY in Q4FY23 to Rs 296.6 crores from Rs 397.4 crores in the same quarter of the previous year whereas for FY23 the PAT dropped by 56.3 per cent to Rs 1,960 crores against Rs 4,487 crores in FY22. The company said the profits were affected by an exceptional expense of Rs 601 crore in Q4FY23. 

Zydus said that the expense includes impairment of goodwill relating to Sentynl Therapeutics and expenses incurred in connection with the cessation of operations at one of the facilities of Zydus Wellness.

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for Q4FY23 came in at Rs 1,255 crores, up by 75 per cent YoY from 717 crores in the March quarter of the year-ago period. In FY23 the EBITDA grew by 15.5 per cent and stood at Rs 3,859 against Rs 3,340 in FY22.

Zydus's EBITDA margins rose in FY23 to 22.4 per cent from 22.1 per cent in FY22 and for Q4FY23 the margins soared by 620 bps to 25.1 per cent from 18.9 per cent in Q4FY22.

The pharma major's Research and Development (R&D) investments for the quarter stood at Rs. 354 crores corresponding to 7.1 per cent of its revenues while for FY23 the R&D investments contributed to 7.2 per cent of the company's revenues and stood at Rs 1,236 crores.

In FY23, Zydus's growth was led by the India business contributing 44 per cent of the total sales, followed by the US and EU businesses which contributed 42 per cent and 9 per cent respectively.

The company informed that its Indian business grew by 11 per cent YoY to Rs 1,997 crores whereas the US business grew by 58 per cent YoY to Rs 2,252 crores. 

"We are well poised to maintain growth momentum, with India geography likely to hold double-digit growth, the US business continuing to leverage our robust product pipeline and agile supply chain and scale-up of our emerging market business," stated Dr Sharvil Patel, Managing Director, Zydus Lifesciences.

Zydus informed that its Net Debt to Equity ratio as on 31st March 2023 was 0.03x while Net Debt to EBITDA stood at 0.14x at the end of March 2023 and Net Cash as on March 31, 2023, was Rs 546 crores.  

The company's stock closed 2.28 per cent lower on Thursday at Rs 507.25 on BSE.