- 12 Aug 2024
- ICICIdirect Research
Zydus Lifesciences Q1FY25- well-rounded growth, significant margin expansion
ZYDUSLIFE - 1113 Change: 9.05 (0.82 %)News: Revenue grew 21% YoY to ₹ 6207 crore, driven by US, India formulation and Consumer wellness. EBITDA grew ~38% YoY to ₹ 2109 crore on the back of strong GPM improvement (increased ~703 bps to 74.4%). EBITDA margins improved 416 bps to 29.4%. Adjusted PAT increased 31% to ₹ 1420 crore. US Formulations grew 26% YoY to ₹ 3093 crore, driven by volume expansion and new launches (7 new launches including 2 niche launches) besides continued traction from gRevlimid. India Formulations grew 12% YoY to ₹ 1376 crore, driven by power brands and new launches (10 new launches). Consumer Wellness business grew ~21% YoY to ₹ 837 crore, driven by personal care segment and gradual recovery in food & nutrition segment.
View: The company over the years has invested significantly towards scaling up of capability for niche and differentiated products. It is now bearing the fruits for the same with scores of niche launches across US, India and other geographies and more such launches planned over the next two-three years with calibrated R&D spend. We expect the launches that are planned are capable of filling the void created by wanning momentum of earlier launches. The company has specifically identified Rare and Orphan disease segment as the new growth opportunity in the future. Management’s upbeat guidance for revenues and EBITDA stems from the confidence in specialty and differentiated launches in the pipeline.
Impact: Positive