Zydus Lifesciences Q4 profit declines 41% to Rs 397 cr

Pharmaceuticals firm Zydus Lifesciences Ltd on Friday reported a 41.47 percent decline in consolidated net profit at Rs 397.4 crore in the fourth quarter ended March, impacted by higher expenses and one-off inventory-related provisions.

The company had posted a consolidated net profit of Rs 679 crore in the same quarter of the previous fiscal year, Zydus Lifesciences said in a regulatory filing.

Consolidated total revenue from operations during the quarter under review stood at Rs 3,863.8 crore as against Rs 3,670.3 crore in the corresponding period a year ago, it added.

Total expenses during the quarter were higher at Rs 3,370 crore as compared to Rs 3,019.3 crore in the year-ago period, with the cost of materials consumed rising to Rs 1,087 crore from Rs 961.2 crore in the same period of the previous fiscal.

The company also incurred expenses of Rs 120 crore during the quarter for changes in inventories of finished goods, work-in-progress, and stock-in-trade.

For the fiscal year ended March 31, 2022, consolidated net profit was at Rs 4,487.3 crore as against Rs 2,133.6 crore in FY21.

Consolidated total revenue from operations in FY22 was at Rs 15,265.2 crore as against Rs 14,403.5 crore in FY21.

Zydus Lifesciences Managing Director Sharvil Patel said, ''We are pleased with our operational performance amid geopolitical turmoil resulting in supply chain challenges and inflationary pressures. Our key businesses performed well aided by an agile supply chain which helped sustain profitability.'' He further said, ''While the quarter's reported margins were impacted by one-off inventory-related provisions, adjusted profitability remained above 20 percent.'' In the fourth quarter, the company said its 'Indian geography' business registered revenues of Rs 1,797 crore, up 11 percent from the same period of the previous fiscal.

Similarly, emerging markets formulations business comprising key markets, including Sri Lanka, Philippines, Brazil, South Africa, and Mexico registered revenues of Rs 275 crore, up 10 percent.

On the other hand, the US formulations business registered a revenue of Rs 1,423.3 crore, down 4 percent, the company said.

Stating that the progress of the company's innovation efforts to build a robust pipeline for the future has been on track, Patel said, ''We remain committed to our pipeline execution to drive sustainable growth.'' Zydus Lifesciences said its board has approved the proposal to buy back a little over 1.15 crore shares, representing up to 1.13 percent of the total number in the paid-up equity share capital of the company, for an aggregate amount of up to Rs 750 crore.

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 ensuing AGM scheduled to be held on August 10, 2022, it added.