Ahmedabad-based drug maker Cadila Healthcare Ltd (Zydus Cadila) in Friday announced a consolidated net profit of Rs 303.6 crore for the quarter ended June 30, 2019 (Q1FY20). As against this, the company's Q1 consolidated net profit for the previous fiscal stood at Rs 460.5 crore.
The fall in net profit, among other factors, is likely to be on account of a rise in cost of materials which stood at Rs 723.5 crore in Q1FY20 as against Rs 632.9 crore in Q1FY19. Finance costs too, almost trebled for the company from Rs 35 crore in Q1FY19 to Rs 89.1 crore in Q1FY20, thereby further impacting the bottomline. Segment-wise, profit before tax in pharmaceuticals fell from Rs 540.1 crore to Rs 314.1 crore, while that of consumer products rose from Rs 29.4 crore to Rs 79.8 crore.
Led by a 46 per cent growth in its India business, the company saw its consolidated total revenue rise by 17.49 per cent to Rs 3,518.9 crore for the quarter ended June 30, 2019. Last year, the Q1 consolidated total revenue stood at Rs 2,995 crore.
Comprising human formulations, consumer wellness and animal health business, Zydus Cadila's India business saw sales rise to Rs 1,675 crore on a year-on-year basis in Q1FY20. During the quarter, the company entered into a marketing alliance with SIFI, the Italian leader in the development of therapeutic solutions for treating ophthalmic disorders, to market innovative intraocular lenses (IOLs) and surgical products developed in Italy and licensed in India by SIFI.
The company's US business, on the other hand, saw sales rise by 11 per cent to Rs 1,367 crore on a y-o-y basis. During the quarter, the company launched 8 new products in the US, apart from filing four additional abbreviated new drug applications (ANDAs) with the USFDA and receiving 10 ANDA approvals, during the quarter. The company’s business in the emerging markets of Asia, Africa and Latin America grew by 12 per cent, with sales of Rs 220 crore.
For the full year (FY20), the company expects its US generics business to grow in single digits, the management told analysts in an earnings call. The management reiterated that the recent official action indicated (OAI) issued by the USFDA on its Moraiya plant will not have any impact on current supplies or revenues, even as the process of remediation was going on in line with commitments made to the regulator.
Meanwhile, the first quarter saw the company announce phase III trials of Desidustat, an investigational new drug aimed at treating anemia in non-dialysis dependent chronic kidney disease (NDD-CKD) patients as part of its research programme. The company also announced the completion of the enrolment of patients in the Evidences IV Phase 2 Clinical Trial of Saroglitazar magnesium in non-alcoholic steatohepatitis (NASH) across 20 clinical sites in the US.