Key Financial Highlights
Q2 FY24 Highlights
- Revenue from operations at Rs. 43,688 mn, up 9% over last year.
- Research & Development (R&D) investments for the quarter stood at Rs. 3,225 mn (7.4% of revenues).
- EBITDA for the quarter was Rs. 11,461 mn, up 41% YoY. EBITDA margin for the quarter stood at 26.2%, an improvement of 580 bps on a YoY basis.
- Net Profit for the quarter was Rs. 8,007 mn, up 53% YoY.
- Capex (organic) for the quarter was Rs. 2,162 mn.
H1 FY24 Highlights
- Revenue from operations at Rs. 95,084 mn, up 19% over last year.
- Research & Development (R&D) investments stood at Rs. 6,464 mn (6.8% of revenues).
- EBITDA was Rs. 26,514 mn, up 61% YoY. EBITDA margin stood at 27.9%, an improvement of 720 bps over the previous year.
- Net Profit was Rs. 18,876 mn, up 81% YoY.
- Capex (organic) for the half year was Rs. 4,365 mn.
Consolidated Financial Results
| Rs. mn | Q2 FY24 | Q2 FY23 | % Gr. | Q1 FY24 | % Gr. |
| y-o-y | q-o-q | ||||
| Revenue from Operations | 43,688 | 40,055 | 9.10% | 51,396 | -15.00% |
| EBITDA | 11,461 | 8,153 | 40.60% | 15,053 | -23.90% |
| EBITDA margin (%) | 26.20% | 20.40% | 29.30% | ||
| PBT | 10,072 | 6,428 | 56.70% | 13,292 | -24.20% |
| Net Profit | 8,007 | 5,225 | 53.20% | 10,869 | -26.30% |
| Rs. mn | H1 | H1 | % Gr. |
| FY24 | FY23 | y-o-y | |
| Revenue from Operations | 95,084 | 79,698 | 19.30% |
| EBITDA | 26,514 | 16,483 | 60.90% |
| EBITDA margin (%) | 27.90% | 20.70% | |
| PBT | 23,364 | 13,238 | 76.50% |
| Net Profit | 18,876 | 10,408 | 81.40% |
Q2 FY24 Business-wise Sales Performance (Consolidated)
| Rs. mn | Q2 FY24 | Q2 FY23 | % Gr. | Q1 FY24 | % Gr. |
| YoY | QoQ | ||||
| India Geography: | 17,693 | 16,875 | 4.80% | 19,206 | -7.90% |
| Formulations | 13,341 | 12,648 | 5.50% | 12,270 | 8.70% |
| Consumer Wellness | 4,352 | 4,227 | 3.00% | 6,936 | -37.30% |
| US Formulations | 18,648 | 17,084 | 9.20% | 24,541 | -24.00% |
| EM & Europe Formulations | 4,504 | 3,849 | 17.00% | 4,893 | -8.00% |
| APIs | 1,402 | 1,117 | 25.50% | 1,389 | 0.90% |
| Alliances & Others | 339 | 501 | -32.30% | 499 | -32.10% |
| Consolidated Revenues | 42,586 | 39,426 | 8.00% | 50,528 | -15.70% |
H1 FY24 Business-wise Sales Performance (Consolidated)
| Rs. mn | H1 FY24 | H1 FY23 | % Gr. |
| YoY | |||
| India Geography: | 36,899 | 35,042 | 5.30% |
| Formulations | 25,611 | 23,899 | 7.20% |
| Consumer Wellness | 11,288 | 11,143 | 1.30% |
| US Formulations | 43,189 | 32,676 | 32.20% |
| EM & Europe Formulations | 9,397 | 7,618 | 23.40% |
| APIs | 2,791 | 2,341 | 19.20% |
| Alliances & Others | 838 | 978 | -14.30% |
| Consolidated Revenues | 93,114 | 78,655 | 18.40% |
Q2 FY24 Business Updates
India Geography
- Comprises of Formulations as well as Consumer Wellness businesses and accounted for 42% of consolidated revenues.
- Registered revenues of Rs. 17,693 mn, up 5% y-o-y.
Formulations business
- Registered revenues of Rs. 13,341 mn, up 6% y-o-y.
- Branded formulations business grew in high single digit adjusting for NLEM impact and was partly affected by delay in acute season.
- The business accounted for 32% of consolidated revenues.
- Gained market share and improved ranking in anti-diabetic and respiratory therapies during the quarter on a y-o-y basis (Source: IQVIA Jul – Sep 23 data).
- On the super specialty front, retained leadership position in the Nephrology segment while in the Oncology space, remained the fastest growing company.
Consumer Wellness business
- Registered revenues of Rs. 4,352 mn, up 3 % y-o-y. Consumer Wellness business accounted for 10% of consolidated revenues.
- Personal care segment, which comprises of Nycil and EverYuth brands, registered robust growth driven by favorable season in many parts of the country.
US formulations business
- Registered revenues of Rs. 18,648 mn, up 9% y-o-y and down 24% q-o-q. The business accounted for 44% of consolidated revenues.
- In constant currency terms, the business registered revenues of US$ 225 mn.
- Launched 8 new products during the quarter.
- New launches include Indomethacin suppository which was granted 180 days of Competitive Generic Therapy (CGT) exclusivity and Plerixafor injection which was a Day 1 launch.
- Filed 4 ANDAs and received approval for 9 ANDAs during the quarter.
Emerging Markets (EM) and Europe formulations business
- Registered revenues of Rs. 4,504 mn, up 17% YoY. The business accounted for 10% of consolidated revenues.
- The business continued to deliver healthy growth with all major markets contributing to the growth during the quarter.
API business
- Registered revenues of Rs. 1,402 mn, up 26% y-o-y. The business accounted for 3% of consolidated revenues.
Alliances & Others
- Registered revenues of Rs. 339 mn, down 32% y-o-y. The business accounted for 1% of consolidated revenues.
Updates on Operations and Compliance
- Received Establishment Inspection Reports (EIR) from the USFDA for the inspections of Oral Solid Dosage (OSD) facilities I and II located in Ahmedabad SEZ and Biologics fill-finish facility located at Zydus Biotech Park in Changodar (near Ahmedabad).
Updates on Innovation Pipeline
NCE: ZYIL1
- Initiated Phase II clinical trials in patients with Amyotrophic Lateral Sclerosis (ALS).
- ALS is a rare, progressive and fatal neurodegenerative disease, with an average life expectancy of 3 to 5 years from the time of symptom onset.
NCE: PCSK9 inhibitor
- Received approval from the CDSCO to initiate Phase I clinical trials to evaluate the safety and tolerability. The molecule will be administered subcutaneously in healthy human volunteers.
- Dyslipidemia patients with high LDL cholesterol are at a high risk of atherosclerotic cardiovascular disease (ASCVD), such as heart attack and stroke.
- This PCSK9 inhibitor will regulate the levels of LDL receptors, which are responsible for the uptake and clearance of cholesterol from the blood.
Biotech R&D
- Completed clinical trials for one monoclonal antibody (mAb) and completed recruitment of patients for clinical trials for another mAb.
- Received regulatory approval to initiate Phase III clinical trials for one more product.
Specialty Initiatives
- Received final approvals from the USFDA for two New Drug Applications (NDAs) viz. Sitagliptin tablets (ZITUVIOTM)and Sitagliptin and Metformin IR tablets (ZITUVIMETTM) in the area of metabolic disorder management.
- Filed one more NDA viz. Sitagliptin and Metformin ER tablets in the area of metabolic disorder management.
Other updates
- Acquired UK headquartered LiqMeds Group of companies which has the capabilities and specialization in development, manufacturing and supply of oral liquid products for global markets.
- LiqMeds has a rich pipeline of differentiated products which includes many 505(b)(2) and FTF/ FTM products.
- The acquisition is in line with the strategy to expand the presence in the specialty space and offer novel solutions to satisfy unmet medical needs.
