The shares of the pharmaceuticals specializing in developing, manufacturing, and marketing a wide range of pharmaceuticals in focus after management expects to reach an EBITA Margin of 23 percent in the next one or two years.
Price action
With a market capitalization of Rs. 1,01,458 Crores on Friday, the shares of Zydus Lifesciences Ltd declined by 1.85 percent after making a low of Rs. 989.05 compared to its previous closing price of Rs. 1,008.20.
About the company
Zydus Lifesciences Ltd is a leading global healthcare company based in India, primarily focused on developing, manufacturing, and marketing a wide range of pharmaceuticals, including generics, active pharmaceutical ingredients (APIs), and consumer wellness products. It operates across several therapeutic areas such as cardiology, dermatology, diabetes, and oncology.
Guidance of Zydus Lifesciences
According to the company’s recent conference call update, they expect to achieve an EBITA margin of 23 percent in the next one or two years.
The company anticipates high single-digit growth in the U.S. overall for FY26 and has a robust pipeline of upcoming launches over the next three to four years.
Financial Performace (Q3FY25)
The company’s Revenue from operations grew by 17.2 percent YoY from Rs. 4,542.9 Crores in Q3FY24 to Rs. 5,326.6 Crores in Q3FY25 and it grew by 0.4 percent QoQ from Rs. 5,305.2 Crores in Q2FY25 to Rs. 5,326.6 Crores in Q3FY25.
Its Net Profit rose 29.6 percent YoY from Rs. 789.6 Crores in Q3FY24 to Rs. 1,023.5 Crores in Q3FY25 and it grew by 12.3 percent QoQ from Rs. 911.2 Crores in Q2FY25 to Rs. 1,023.5 Crores in Q3FY25.
Key Highlights (Q3 FY25)
India’s formulation business grew faster than the market, driven by strong chronic outperformance with secondary sales growth of 8 percent according to IQVIA. The Consumer Wellness business grew in double digits, supported by robust volume growth of 4.8 percent despite a muted demand scenario in the industry.
The U.S. formulations business continued its upward trajectory, with impressive year-on-year growth driven by volume expansion and new launches over the past 12 months. The international markets business grew in double digits, supported by healthy demand across various markets.
Business-wise sales Breakup
The company generates 29 percent of its product sales from India Formulations, amounting to Rs. 1489.3 crore, the Consumer Wellness segment contributes 9 percent which is 461.1 crore, U.S market generates 47 percent totaling Rs. 2407.9 crore, and international Formulations contribute 11 percent of Rs. 563.6 crores, API segment 3 percent which is Rs. 153.7 crores, and lastly, alliances contribute 1 percent amounting to Rs.51.2 crores of the total sales of 5,123.5 crores.
Written by Sridhar J
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