Q2 2025 Zydus Lifesciences Ltd Earnings Call Transcript
Key Points
- Zydus Lifesciences Ltd (BOM:532321) reported strong double-digit growth across all key businesses, with consolidated revenues up 20% year-on-year.
- The India branded formulations business outpaced market growth with a 10% year-on-year increase, driven by healthy volumes and new product contributions.
- The US formulations business saw a 30% year-on-year revenue increase, supported by volume expansion and new product launches.
- The company maintained a robust net cash position of ₹25.9 billion as of September 30, 2024, significantly up from ₹8.6 billion as of March 31, 2024.
- Zydus Lifesciences Ltd (BOM:532321) continues to focus on innovation, with a strong pipeline of novel and differentiated products aimed at fulfilling unmet healthcare needs.
- The US FDA issued a warning letter to Zydus Lifesciences Ltd (BOM:532321)'s injectable facility in Jarrod, indicating compliance issues that require corrective actions.
- Increased R&D spending led to a 185 basis points rise year-on-year, impacting operational profitability despite overall margin improvements.
- The effective tax rate for the year is expected to be higher at 24-25% due to one-off provisions and increased R&D expenses across different tax jurisdictions.
- The company faces ongoing political and economic challenges in some international markets, which could impact future growth.
- Litigation unpredictability, particularly concerning the Mirabegron product, poses potential risks to future revenue streams.
For today's call we have with us Dr. Sharvil P. Patel, managing director, Nitinkumar Parekh , Chief Financial Officer, Mr Arvind Bothra, head of investor relations and Mr Alo G from the managing director's office.
Let me now give you a broad overview of the developments during the quarter.
I'm happy to inform you that we delivered strong double digit growth during the quarter on the back of sustained growth across all our key businesses.
Our India branded formulations business continued to outgrow the market with 10% year on year growth driven by healthy volumes and contribution from new products.
The consumer wellness business continued to see robust demand in all categories.
The US formulations business continued its upward journey with a robust year on year growth driven by volume expansion and new products launched over the last 12 months, the international formulations business comprising of the emerging markets and Europe also delivered strong growth on the back of resilient demand across
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