Zydus Lifesciences Reports Strong Q2 FY24 Results With 9% Revenue Growth

Zydus Lifesciences has unveiled its unaudited consolidated financial results for the quarter and half-year ending on September 30, 2023, the company said in a press statement on Tuesday.

In the second quarter of the fiscal year 2024, Zydus Lifesciences reported a significant 9 per cent year-over-year increase in revenue from operations, reaching Rs. 43,688 million. The company allocated Rs. 3,225 million to research and development (R&D) investments, equivalent to 7.4 per cent of revenues.

Remarkably, the quarter demonstrated substantial growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), which soared to Rs. 11,461 million, marking a substantial 41 per cent YoY improvement. The EBITDA margin expanded by 580 basis points, standing at 26.2 per cent. The company's net profit for the quarter reached Rs. 8,007 million, representing a remarkable 53 per cent year-over-year increase.

During the quarter, Zydus invested Rs. 2,162 million in organic capital expenditure, the company informed.

For the first half of the fiscal year 2024, the company achieved impressive revenue growth, with revenue from operations amounting to Rs. 95,084 million, reflecting a substantial 19 per cent increase over the previous year, the statement from the company read.

Investments in R&D for the half-year reached Rs. 6,464 million, comprising 6.8 per cent of revenues. The EBITDA for the first half reached Rs. 26,514 million, marking a notable 61 per cent year-over-year increase. The EBITDA margin stood at 27.9 per cent, reflecting an improvement of 720 basis points over the previous year.

Zydus Lifesciences reported a net profit of Rs. 18,876 million for the first half, representing an impressive 81per cent year-over-year increase. During the half-year, the company invested Rs. 4,365 million in organic capital expenditure.

The company's statement further highlighted the specifics of business performance in Q2 FY24, Zydus Lifesciences reported a 4.8 per cent year-over-year revenue increase from the Indian market, reaching Rs. 17,693 million. The formulations segment witnessed revenues of Rs. 13,341 million, representing a 5.5 per cent increase compared to the previous year.

The company informed that the Consumer Wellness business contributed revenues of Rs. 4,352 million, showing a 3.0 per cent year-over-year growth. In the US Formulations business, the company achieved a substantial 9.2 per cent increase, with revenues reaching Rs. 18,648 million. The EM & Europe Formulations segment demonstrated robust growth, with revenues of Rs. 4,504 million, marking a significant 17.0 per cent increase year-over-year. The APIs segment contributed Rs. 1,402 million in revenues, reflecting a remarkable 25.5 per cent year-over-year growth. However, the Alliances & Others segment reported revenues of Rs. 339 million, indicating a 32.3 per cent decrease year-over-year.