Net profit adjusted for the exceptional expense in Q4 FY23 was Rs 897.9 crore, up 126% YoY. Excluding the exceptional expense, one-time COVID related inventory provision and profit/ (loss) of discontinued operations, net profit was up by 71% YoY.

The company reported an exceptional expense of Rs 601.3 crore during the quarter. It includes impairment of goodwill relating to Sentynl Therapeutics and expenses incurred in connection with cessation of operations at one of the facilities of Zydus Wellness.

Profit before exceptional items and tax soared 89.75% to Rs 1,087.1 crore in Q4 FY23 from Rs 572.9 crore posted in Q4 FY22.

Total expenses grew by 19.61% YoY to Rs 3,961.3 crore in Q4 FY23. Cost of material consumed stood at Rs 1,209.7 crore (up 11.29% YoY) while employee benefit expenses was at Rs 723.9 crore (up 20.69% YoY) during the period under review.

EBITDA in Q4 FY23 was at Rs 1,255.6 crore, registering a growth of 75% YoY. EBITDA margin improved to 25.1% in Q4 FY23 as compared to 18.9% reported in the same period a year ago.

Research & Development (R&D) investments for the quarter stood at Rs 354.1 crore (7.1% of revenues). Capex (organic) for the quarter was at Rs 204 crore.

Revenue from formulations business stood at Rs 1,289.6 crore in Q4 FY23, up by 11% YoY. Excluding sales of COVID related products, the business grew 12% YoY. India Formulations business accounted for 26% of consolidated revenues.

Revenue from US formulations business was at Rs 2,252.5 crore up 58% YoY. The business accounted for 46% of consolidated revenues. In constant currency terms, the business registered revenues of $275 million. Growth during the quarter was driven by volume expansion in existing products and new launches, said the company.

The pharma company filed 2 abbreviated new drug applications (ANDAs) and received approval for 28 ANDAs (including 5 tentative approvals) during the quarter. The company has launched 8 new products in Q4 FY23.

Revenue from emerging markets (EM) and Europe formulations business jumped 34% YoY to Rs 439.3 crore in Q4 FY23, excluding revenues of COVID related products from the base. The business accounted for 9% of consolidated revenues.

Revenue from APIs business grew 8% YoY to Rs 125.1 crore in Q4 FY23. The business accounted for 3% of consolidated revenues.

During financial year ended March 2023, the drug maker's consolidated net profit declined 12.34% to Rs 1,964.9 crore despite of 14.08% rise in total revenue to Rs 17,237.4 crore as compared to FY22.

Net debt to equity ratio as on 31 March 2023 was at negative 0.03x while net debt to EBITDA stood at negative 0.14x at the end of March 2023. Net cash (negative net debt) as on 31 March 2023 was Rs 546.1 crore.

Dr. Sharvil Patel, managing director, “We are well poised to maintain growth momentum, with India geography likely to hold double-digit growth, the US business continuing to leverage our robust product pipeline and agile supply chain and scale-up of our emerging market business. We are committed to upholding high quality management standards and working constantly to enhance them. We are advancing our innovation efforts with an aim to serve the patients' needs across markets and improving their health outcomes.”

Meanwhile, the company's board has recommended a final dividend of Rs 6 per equity share, subject to approval of the shareholders at the ensuing AGM scheduled to be held on 11 August 2023.

Zydus Lifesciences is a discovery-driven, global lifesciences company that discovers, develops, manufactures, and markets a broad range of healthcare therapies.