Zydus Life Q3 results: Net profit jumps 30% to Rs 1,024 cr on strong demand

(Reuters) - India's Zydus Lifesciences reported third-quarter profit above analysts' expectations on Wednesday, driven by strong demand for its generic drugs in its key U.S. market.

The drugmaker's consolidated net profit jumped 30 per cent to Rs 1,024 crore ($117.4 million) in the quarter ended Dec. 31, beating analysts' average estimate of Rs 885 crore, as per data compiled by LSEG.

Revenue from operations climbed 17 per cent to Rs 5,269 crore led by a 31 per cent jump in the company's top market - the United States. However, growth in India slowed to 6.7 per cent from 16 per cent last year.

The United States is the company's biggest market accounting for 47 per cent of total revenue, followed by India.

Shares of Zydus Life were trading 1.3 per cent lower after results.

Key Context

New product launches helped Zydus Life increase its revenue from the United States at a time when stiff competition has weighed on the margins of Indian generic drugmakers, which earn a major chunk of their revenues from the region.

Among Zydus Life's rivals, Sun Pharma and Cipla beat third-quarter profit estimates, while Dr Reddy's missed expectations. However, all three saw muted growth in their key North American market.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)