Zydus Lifesciences Q4 profit down 41 per cent to Rs 397 crore
Pharmaceuticals firm Zydus Lifesciences Ltd on Friday reported a 41.47 per cent decline in consolidated net profit at Rs 397.4 crore for the fourth quarter ended March, hit by higher expenses and one-time inventory related provisions.
Zydus Lifesciences said in a regulatory filing that the company had posted a consolidated net profit of Rs 679 crore in the same quarter of the previous fiscal.
Total revenue from operations stood at Rs 3,863.8 crore during the quarter under review as against Rs 3,670.3 crore in the same period a year ago.
Total expenditure during the quarter stood at Rs 3,370 crore as against Rs 3,019.3 crore in the year-ago period, while the cost of material consumed increased to Rs 1,087 crore from Rs 961.2 crore in the same period last fiscal.
The company also incurred an expenditure of Rs 120 crore for replacement of finished goods, work-in-progress and stock-in-trade inventory during the quarter.
For the financial year ended March 31, 2022, the consolidated net profit stood at Rs 4,487.3 crore as against Rs 2,133.6 crore in FY 2011.
The total revenue from operations in FY 2012 was Rs 15,265.2 crore as compared to Rs 14,403.5 crore in FY 2011.
Sharvil Patel, Managing Director, Zydus Lifesciences, said, “We are pleased with our operational performance amid geopolitical turmoil, resulting in supply chain challenges and inflationary pressures. Our core businesses performed well driven by an agile supply chain. Helped maintain profitability.”
He further added, “While the quarter’s reported margins were impacted by one-time inventory related provisions, adjusted profitability remained above 20 per cent.”
In the fourth quarter, the company said its ‘Indian Geography’ business reported revenue of Rs 1,797 crore, up 11 per cent from the same period last fiscal.
Similarly, the formulation business in emerging markets with key markets including Sri Lanka, Philippines, Brazil, South Africa and Mexico reported a 10 per cent growth in revenue of Rs 275 crore.
On the other hand, the US formulations business reported a decline of 4 per cent at Rs 1,423.3 crore, the company said.
Stating that the company’s innovation efforts are on track to build a strong pipeline for the future, Patel said, “We remain committed to our pipeline execution to drive sustainable growth.”
Zydus Lifesciences said its board has approved a proposal to buy back 1.15 crore shares for an aggregate amount of up to Rs 750 crore, which is up to 1.13 per cent of the total number of paid-up equity share capital of the company. ,
The Board has also recommended a final dividend of Rs 2.50 per equity share of Re 1 each, subject to the approval of the shareholders, at the upcoming AGM to be held on August 10, 2022.