Key Financial Highlights 

Q2 FY24 Highlights 

• Revenue from operations at Rs. 43,688 mn, up 9% over last year. 
• Research & Development (R&D) investments for the quarter stood at Rs. 3,225 mn  (7.4% of revenues).  
• EBITDA for the quarter was Rs. 11,461 mn, up 41% YoY. EBITDA margin for the quarter  stood at 26.2%, an improvement of 580 bps on a YoY basis. 
• Net Profit for the quarter was Rs. 8,007 mn, up 53% YoY. 
• Capex (organic) for the quarter was Rs. 2,162 mn. 

H1 FY24 Highlights 

• Revenue from operations at Rs. 95,084 mn, up 19% over last year. 
• Research & Development (R&D) investments stood at Rs. 6,464 mn (6.8% of  revenues).  
• EBITDA was Rs. 26,514 mn, up 61% YoY. EBITDA margin stood at 27.9%, an  improvement of 720 bps over the previous year. 
• Net Profit was Rs. 18,876 mn, up 81% YoY. 
• Capex (organic) for the half year was Rs. 4,365 mn. 

Consolidated Financial Results

Rs. mn                                      Q2 FY24      Q2FY23      % Gr. y-o-y     Q1  FY24     % Gr. q-o-q 

Revenue from Operations      43,688         40,055         9.1%               51,396          -15.0%

EBITDA                                      11,461          8,153           40.6%            15,053          -23.9%

EBITDA margin (%)                  26.2%           20.4%                                 29.3%  

PBT                                            10,072          6,428           56.7%            13,292          -24.2%

Net Profit                                   8,007            5,225           53.2%            10,869          -26.3% 

Rs.  mn                                         H1 FY24       H1 FY23      % Gr. y-o-y 

Revenue from Operations         95,084           79,698          19.3%

EBITDA                                         26,514           16,483          60.9%

EBITDA margin (%)                     27.9%            20.7%  

PBT                                               23,364           13,238          76.5%

Net Profit                                     18,876           10,408          81.4% 

Our Q2 FY24 result represents stable growth in our key businesses, as well as strong  profitability. We are on track to meet our growth objectives for the year. Going ahead,  differentiated launches in the US, in addition to a rebound in India business growth which  was constrained by delayed seasonality, will be critical drivers. We anticipate sustained  momentum in profitability and aim for EBITDA margins of more than 24% in the current  fiscal year. 

–  Dr. Sharvil Patel, Managing Director – Zydus Lifesciences Limited

Q2 FY24 Business-wise Sales Performance (Consolidated)

Rs. mn                                       Q2 FY24       Q2 FY23      % Gr. YoY      Q1 FY24      % Gr. QoQ 

India Geography:                     17,693          16,875         4.8%              19,206          -7.9%

Formulations                             13,341           12,648          5.5%              12,270            8.7%

Consumer Wellness                  4,352             4,227            3.0%               6,936            -37.3% 

US Formulations                      18,648          17,084         9.2%              24,541          -24.0%

EM & Europe Formulations     4,504            3,849          17.0%             4,893            -8.0%

APIs                                            1,402            1,117           25.5%            1,389             0.9%

Alliances & Others                   339                501             -32.3%           499                -32.1% 

Consolidated Revenues          42,586          39,426        8.0%              50,528           -15.7%

H1 FY24 Business-wise Sales Performance (Consolidated)

Rs. mn                                          H1 FY24           H1 FY23        % Gr. YoY 

India Geography:                        36,899              35,042            5.3%

Formulations                                 25,611              23,899            7.2%

Consumer Wellness                     11,288               11,143           1.3% 

US Formulations                          43,189              32,676          32.2%

EM & Europe Formulations        9,397                 7,618            23.4%

APIs                                                2,791                2,341            19.2%

Alliances & Others                       838                    978               -14.3% 

Consolidated Revenues              93,114              78,655         18.4% 

Q2 FY24 Business Updates

India Geography 

• Comprises of Formulations as well as Consumer Wellness businesses and  accounted for 42% of consolidated revenues. 
• Registered revenues of Rs. 17,693 mn, up 5% y-o-y.  

Formulations business 

• Registered revenues of Rs. 13,341 mn, up 6% y-o-y.  
• Branded formulations business grew in high single digit adjusting for NLEM  impact and was partly affected by delay in acute season. 
• The business accounted for 32% of consolidated revenues. 
• Gained market share and improved ranking in anti-diabetic and respiratory therapies during the quarter on a y-o-y basis (Source: IQVIA Jul – Sep 23 data). 
• On the super specialty front, retained leadership position in the Nephrology  segment while in the Oncology space, remained the fastest growing company.  

Consumer Wellness business 

• Registered revenues of Rs. 4,352 mn, up 3 % y-o-y. Consumer Wellness business  accounted for 10% of consolidated revenues. 
• Personal care segment, which comprises of Nycil and EverYuth brands,  registered robust growth driven by favorable season in many parts of the  country. 

US formulations business 

• Registered revenues of Rs. 18,648 mn, up 9% y-o-y and down 24% q-o-q. The  business accounted for 44% of consolidated revenues. 
• In constant currency terms, the business registered revenues of US$ 225 mn.  • Launched 8 new products during the quarter. 
• New launches include Indomethacin suppository which was granted 180 days of  Competitive Generic Therapy (CGT) exclusivity and Plerixafor injection which was  a Day 1 launch. 
• Filed 4 ANDAs and received approval for 9 ANDAs during the quarter. 

Emerging Markets (EM) and Europe formulations business 

• Registered revenues of Rs. 4,504 mn, up 17% YoY. The business accounted for  10% of consolidated revenues. 
• The business continued to deliver healthy growth with all major markets  contributing to the growth during the quarter. 

API business 

• Registered revenues of Rs. 1,402 mn, up 26% y-o-y. The business accounted for  3% of consolidated revenues. 

Alliances & Others 

• Registered revenues of Rs. 339 mn, down 32% y-o-y. The business accounted  for 1% of consolidated revenues. 

Updates on Operations and Compliance

• Received Establishment Inspection Reports (EIR) from the USFDA for the  inspections of Oral Solid Dosage (OSD) facilities I and II located in Ahmedabad  SEZ and Biologics fill-finish facility located at Zydus Biotech Park in Changodar (near Ahmedabad). 

Updates on Innovation Pipeline 

NCE: ZYIL1 

• Initiated Phase II clinical trials in patients with Amyotrophic Lateral Sclerosis  (ALS).  
• ALS is a rare, progressive and fatal neurodegenerative disease, with an average  life expectancy of 3 to 5 years from the time of symptom onset. 

NCE: PCSK9 inhibitor 

• Received approval from the CDSCO to initiate Phase I clinical trials to evaluate  the safety and tolerability. The molecule will be administered subcutaneously in  healthy human volunteers. 
• Dyslipidemia patients with high LDL cholesterol are at a high risk of  atherosclerotic cardiovascular disease (ASCVD), such as heart attack and stroke. 
• This PCSK9 inhibitor will regulate the levels of LDL receptors, which are  responsible for the uptake and clearance of cholesterol from the blood. 

Biotech R&D 

• Completed clinical trials for one monoclonal antibody (mAb) and completed  recruitment of patients for clinical trials for another mAb. 
• Received regulatory approval to initiate Phase III clinical trials for one more  product. 

Specialty Initiatives 

• Received final approvals from the USFDA for two New Drug Applications (NDAs)  viz. Sitagliptin tablets (ZITUVIOTM)and Sitagliptin and Metformin IR tablets  (ZITUVIMETTM) in the area of metabolic disorder management.  
• Filed one more NDA viz. Sitagliptin and Metformin ER tablets in the area of  metabolic disorder management.  

Other Updates

• Acquired UK headquartered LiqMeds Group of companies which has the  capabilities and specialization in development, manufacturing and supply of oral  liquid products for global markets. 
• LiqMeds has a rich pipeline of differentiated products which includes many  505(b)(2) and FTF/ FTM products. 
• The acquisition is in line with the strategy to expand the presence in the specialty  space and offer novel solutions to satisfy unmet medical needs. 

Q2 FY24 Earnings Call Details 

The Company will host its post results earnings call at 4:00 p.m. IST on 7th November,  2023 during which the leadership team will discuss the financial performance and  address questions from the participants. 

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