Profit before tax jumped by 56.68% to Rs 1,007.2 crore in Q2 FY24 from Rs 642.8 crore in Q2 FY23.

EBITDA during the quarter was at Rs 1,146.1 crore, registering a growth of 40.6% YoY. EBITDA margin improved to 26.2% in Q2 FY24 as compared to 20.4% reported in the same period a year ago.

Research & Development (R&D) investments for the quarter stood at Rs 322.5 crore in Q2 FY24, up by 27.3% as compared with Rs 253.40 crore posted in Q2 FY23 (7.4% of revenues). Capex (organic) for the quarter was at Rs 216.20 crore in Q2 FY24.

Revenue from formulations business stood at Rs 1,334.1 crore in Q2 FY24, up by 5.5% YoY. Branded business grew in high single digit adjusting for NLEM impact and was partly affected by delay in acute season. India formulations business accounted for 32% of consolidated revenues.

Revenue from US formulations business was at Rs 1,864.8 crore up 9.2% YoY. The business accounted for 44% of consolidated revenues. In constant currency terms, the business registered revenues of $225 million.

Revenue from emerging markets (EM) and Europe formulations business jumped 17% YoY to Rs 450.4 crore in Q2 FY24, The business accounted for 10% of consolidated revenues. During the quarter, the business continued to deliver healthy growth with all major markets contributing to the growth.

Revenue from APIs business jumped 25.5% YoY to Rs 140.2 crore in Q2 FY24. The business accounted for 3% of consolidated revenues.

However, revenue from alliances & others declined 32.3% YoY to Rs 33.9 crore in Q2 FY24. The business accounted for 1% of consolidated revenues.

The company has Filed 4 ANDAs and received approval for 9 ANDAs during the quarter. It has launched 8 new products in Q2 FY24.

Sharvil Patel, managing director, Zydus Lifesciences, said, “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.”

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