Zydus Life Q2 PAT drops 83% YoY to Rs 522 cr

Zydus Lifesciences' consolidated net profit slumped 82.6% to Rs 522.50 crore despite of a 10% increase in total revenue from operations to Rs 4,134.7 crore in Q2 FY23 over Q2 FY22.

EBITDA slipped by 9.4% to Rs 815.3 crore in Q2 FY23 from Rs 899.5 crore in Q2 FY22. EBITDA margin de-grew to 19.7% in Q2 FY23 as against 23.9% in Q2 FY22.

Profit before tax in Q2 FY23 stood at Rs 642.8 crore, down by 25.1% from Rs 858.1 crore in Q2 FY22.

Total expenses rose by 15.3% to Rs 3,536.3 crore in the quarter ended 30 September 2022. Cost of raw material consumed stood at Rs 1,127.3 crore (up 11.2% YoY) and employee expenses stood at Rs 671.7 crore (up 8.4% YoY) in Q2 FY23.

Research & Development (R&D) investments for the quarter stood at Rs 253.4 crore (6.1% of revenues). Capex (organic) for the quarter was Rs 215.7 crore.

The pharma company filed 3 abbreviated new drug applications (ANDA) and received approval for 15 new products (including 2 tentative approvals) during the quarter. The company launched 10 new products (including Revlimid) which aided growth momentum. As on 30 September 2022, the drug maker's 105 ANDA's are pending for approval with the USFDA.

Dr. Sharvil Patel, managing director of Zydus Lifesciences said, "Our Q2 FY23 performance reflects strong execution in our key businesses, sustaining growth momentum and profitability. While new launches including gRevlimid aided US growth, India Formulations continued to deliver double-digit growth, excluding COVID related revenues. We expect to improve our profitability steadily going ahead, and remain on track to deliver 20% plus EBITDA margins for the current fiscal. We are delighted with the resolution of regulatory issues at Moraiya and remain committed to enhance quality and compliance standards across our manufacturing network."

Zydus Lifesciences is a discovery-driven, global lifesciences company that discovers, develops, manufactures, and markets a broad range of healthcare therapies.

The scrip declined 0.81% to currently trade at Rs 430.20 on the BSE.

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