Zydus Lifesciences reports double-digit growth in second quarter, revenue up 20%

Zydus Lifesciences Ltd reported strong double-digit growth in line with expectations as its key businesses continued to grow, the company announced in its September quarter consolidated financial results on Tuesday.

Its comprehensive income increased by 20% year-on-year. $4,369 Crore in Q2 FY24 $5,237 crore in Q2 FY25. The company reported net profit of $9.11 billion rupees, a year-on-year increase of 14% $801 crore in Q2FY24. The pharmaceutical giant’s Ebitda grew 27.5% year-on-year $1,146 crore in Q2 FY24 $1,461 crore in the ninth quarter of this fiscal year. Ebitda is earnings before interest, taxes, depreciation and amortization.

Ebitda margin increased 170 basis points to 27.9% in the quarter from 26.2% in the same period last year.

The company said its research and development (R&D) spending during the quarter was $4.8 billion, accounting for 9.2% of its revenue. This is higher than R&D investment in the first quarter of fiscal 2025 $392.5 Crores and Q2 FY24, $319.5 Crores. The company plans to continue investing in research and development this fiscal year. “The guidance for fiscal 2025 is around 8% of revenue… Going forward, at least in the near future, we will be looking at the same,” Managing Director Dr. Sharvil Patel said in an earnings call with investors after the earnings announcement. Proportion.”

Zydus’ India operations

Zydus’ India business, which includes its formulations and health businesses, accounts for 38% of its consolidated revenue. Its branded business grew 10% year over year, beating the market in both chronic and acute segments. The consolidated revenue of Indian companies is $1,944 Crores.

The company’s U.S. preparation business grew by 30% year-on-year, with revenue of $2,417 Crores. But it dropped 22% month-on-month $3,093 crore in Q1 FY25. This business accounts for 47% of the company’s consolidated revenue.

The company is focusing on expanding its U.S. operations. “We are targeting three to four growth points in the U.S.,” said Patel. In addition to its generics business, the company is also expanding its injectables business and launching competitive generics. In addition, earlier this year, they entered the animal protein-free product space by forming a joint venture with Perfect Day Inc. to acquire a 50% stake in Sterling Biotech Ltd. The company’s production scale has also expanded significantly. Rare and specialty products business, says Patel.

The company’s API business dropped 15% year-on-year $Revenue for the quarter was Rs 119 crore. 2% of consolidated revenue.

During the quarter, the company’s consumer health business acquired Naturell (India) Pvt. Ltd., maker of Ritebite Max Protein and other products. business is about $Annual revenue is 1.3 billion rupees. “We have always said we want to play a role in the protein malnutrition slash nutrition space, and this provides us with a great area to enter,” Patel said on the earnings call. “The brand is the market leader in the category and is experiencing strong growth,” he added.

The company’s performance meets Bloomberg Its comprehensive income is estimated to be $5,233 crore and net profit of Rs. $916 Crores. Earnings before interest, taxes, depreciation and amortization (Ebitda) is expected to be $1,356 Crores.

Zydus Lifesciences Ltd shares closed at $After the second quarter results were announced, the NSE index was 948.95 on Tuesday, down 2.4% from the previous day.