Zydus Lifesciences (ZYDUSLIFE) Q1 24/25 earnings summary

Executive summary

• Achieved strong double-digit revenue growth and record-high operating profit and margins in Q1 FY25, with all business segments contributing positively.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, following Audit Committee review.

• Independent auditors issued unqualified limited review reports for both standalone and consolidated results.

Financial highlights

• Consolidated revenues reached INR 62.1 billion, up 21% year-on-year and 12% sequentially.

• EBITDA was INR 20.8 billion, up 38% year-on-year and 28% sequentially; EBITDA margin improved to 33.6%, up 430 bps year-on-year.

• Net profit stood at INR 14.2 billion, up 31% year-on-year and 20% sequentially.

• Standalone revenue from operations for Q1 FY25 was ₹41,602 million, up from ₹29,557 million in Q1 FY24.

• Entire debt repaid, resulting in a deleveraged balance sheet.

Outlook and guidance

• Expecting 100-150 bps improvement in EBITDA margin over FY24's 27.5%.

• Maintaining high teens revenue growth guidance for FY25 despite strong Q1 performance.

• R&D spend to remain at 7-9% of sales, averaging 8% over three years.

• US business projected to deliver healthy double-digit growth for the year.

• Board and management continue to focus on growth in core pharmaceutical and consumer product segments.