- 06 Feb 2025
- ICICIdirect Research
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ZYDUS LIFESCIENCES REVENUE GREW ~18PERCENT YOY TO RS 5123 CRORE
ZYDUSLIFE - 975 Change: -3.85 (-0.39 %)News: Revenue grew ~18% YoY to ₹ 5123 crore, driven by US, International formulations and Consumer wellness. EBITDA grew ~11% YoY to ₹ 1205 crore on the back of strong GPM improvement (increased ~254 bps to 69.9%). EBITDA margins squeezed 114 bps to ~23%. Adjusting for certain one-off charges (₹ 94 crore) margins stood at ~25%. Adjusted PAT increased ~16% to ₹ 869 crore. US Formulations grew 31% YoY to ₹ 2410 crore, driven by volume expansion and new launches (5 new launches) including 3 brands of Sitagliptin (Anti-Diabetic), besides exclusivity in gMyrbetriq (overactive bladder management). gRevlimid (anti-cancer) contribution was almost negligible during the quarter. International Formulations grew ~20% YoY to ₹ 539 crore driven by growth across key markets. India Formulations grew 5% YoY (on a high base) to ₹ 1498 crore, driven by power brands and new launches (12 new launches including line extension). Consumer Wellness business grew ~13% YoY to ₹ 449 crore, driven by the personal care segment and acquired portfolio of Naturell.
View: The company over the years has invested significantly towards scaling up 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. We expect the launches that are planned can fill the void created by wanning momentum of earlier launches. The company has specifically identified the Rare and Orphan disease segment as the new growth opportunity in the future. R&D trajectory has gone up from 7% to 9.5% with specialty contribution of ~35%.
Impact: Positive