Zydus Lifesciences' Q2 net profit drops 26.6% due to rise in expenses

Zydus Lifesciences has reported a 26.6 per cent decline in its consolidated net profit for the September quarter. According to a report by Business Standard, the company's profit fell to ₹925.5 crore due to an increase in expenses. In the corresponding period of the previous financial year, the company had recorded a net profit of ₹1,260.9 crore.

Despite the dip in profit, there was growth in the company's revenue from operations. In the quarter under review, revenue reached ₹7,909.6 crore, compared to ₹6,123.2 crore in the same period last year. On the other hand, the company's total expenditure rose to ₹6,806.6 crore this quarter from ₹4,509 crore last year.

The company stated in a media release that the pharma business contributed 83 per cent to its total sales. Revenue from the North American formulations business increased by 21 per cent to ₹3,314.5 crore, primarily driven by volume expansion in the base business and the scale-up of the US specialty business. Meanwhile, revenue from the India formulations business grew by 18 per cent.

Sharvil Patel, Managing Director of Zydus Lifesciences, stated, "Our Q2 performance demonstrates strong and comprehensive momentum, led by our branded business in India, international markets, and wellness." He further added that the share of branded sales in the US has increased to 16 per cent. He expressed hope for the approval and launching of the company's first indigenously discovered NCE 'Saroglitazar' in America.

According to exchange filings, during the April-September period of financial year 27, the company's net profit declined by 30.86 per cent to ₹1,885.9 crore, compared to ₹2,727.7 crore in the previous year.

The impact of these results was seen in the stock market. According to Business Standard, Zydus Lifesciences shares were trading at ₹1,197.50 on the BSE on Wednesday at 1:25 pm, down by 3.35 per cent.