Zydus Life Q3 Results: Profit, Revenue Beat Estimates

Income from US formulations business registered 31% growth to Rs 2,409.6 crore, although sequentially it was flat. US formulations business continued its upward trajectory with a formidable YoY growth, driven by volume expansion and new launches over last 12 months. The business accounted for 47% of consolidated revenues in a quarter where it launched five products in the world's top pharma market. In constant currency terms, the business registered revenues of $285 million.

India formulations business grew faster than the market, led by strong chronic outperformance. Chronic segment outpaced the market growth, driving the overall performance. Contribution of chronic portfolio has increased consistently over the years and stood at 42.4%, an improvement of 370 bps over the last three years.

In India, which comprises of formulations as well as consumer wellness businesses, revenue rose 7% to Rs 1,947 crore. The company gained market share in key therapies of cardiology, respiratory, anti-infectives and super specialty therapy of oncology.

Consumer Wellness business grew in double-digit, aided by robust volume growth of 4.8%, amid muted demand scenario in the industry. International markets business grew in double-digit, on the back of healthy demand across markets.

Personal care segment witnessed strong demand and achieved robust double-digit growth.

Organic capex for the quarter was Rs 290 crore.

Zydus Life said it is on track to achieve its fiscal 2025 goal of double-digit growth across key businesses, coupled with improved profitability. "Our robust product portfolio execution in the US, market share gain in focused therapy segments and brands in India, and strategic leveraging of our global portfolio in International Markets position us well for future growth," a press statement said.

Shares of Zydus Life were trading 1.2% lower at Rs 963 apiece after the results were announced. The benchmark Nifty 50 was flat.

(This is a developing story.)