Zydus Lifesciences has reported a 41.47 per cent decline in consolidated net profit at Rs 397.4 crores 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 crores in the same quarter of 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 crores as against Rs 3,670.3 crores in the corresponding period a year ago, it added.
Total expenses during the quarter were higher at Rs 3,370 crores as compared to Rs 3,019.3 crores in the year-ago period, with the cost of material consumed rising to Rs 1,087 crores from Rs 961.2 crores in the same period of the previous fiscal.
The company also incurred expenses of Rs 120 crores during the quarter for changes in inventories of finished goods, work-in-progress and stock-in-trade.
For the fiscal year ended 31st March, 2022, consolidated net profit was at Rs 4,487.3 crores as against Rs 2,133.6 crores in FY21.
Consolidated total revenue from operations in FY22 was at Rs 15,265.2 crores as against Rs 14,403.5 crores in FY21.
Sharvil Patel, Managing Director, Zydus Lifesciences, 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 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 per cent.”
In the fourth quarter, the company said its ‘Indian geography’ business registered revenues of Rs 1,797 crores, up 11 per cent from the same period of previous fiscal.
Similarly, emerging markets formulations business comprising key markets, including Sri Lanka, Philippines, Brazil, South Africa and Mexico registered revenues of Rs 275 crores, up 10 per cent.
On the other hand, the US formulations business registered a revenue of Rs 1,423.3 crores, down four per cent, 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.”
Edits by EP News Bureau