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Zydus Lifesciences Q4 Consolidated Net Profit Dips 25.36% To Rs 296.6 Crore

Zydus Lifesciences said it incurred an exceptional item of Rs 594.1 crore as impairment of goodwill by Sentynl Therapeutics Inc, a wholly-owned subsidiary of the group

Zydus Lifesciences Ltd on Thursday reported a 25.36 per cent decline in consolidated net profit at Rs 296.6 crore in the fourth quarter ended March 31, 2023 impacted by impairment of goodwill of a wholly-owned subsidiary.

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The company, which had posted a consolidated net profit of Rs 397.4 crore in the same quarter of the previous fiscal, said its board has recommended a final dividend of Rs 6 per equity share of Re 1 each, subject to approval of shareholders at the Annual General Meeting scheduled to be held on August 11, 2023.

Consolidated total revenue from operations stood at Rs 5,010.6 crore, as against Rs 3,805.6 crore in the corresponding period a year ago, Zydus Lifesciences said in a regulatory filing.

Total expenses were higher at Rs 3,961.3 crore, as compared to Rs 3,311.8 crore in the year-ago quarter.

During the quarter, Zydus Lifesciences said it incurred an exceptional item of Rs 594.1 crore as impairment of goodwill by Sentynl Therapeutics Inc, a wholly-owned subsidiary of the group.

Moreover, it also incurred Rs 7.2 crore in connection with the cessation of the operations of one of the manufacturing facilities of Zydus Wellness Products Ltd, a subsidiary of the group, the filing said.

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For the fiscal ended March 31, 2023, consolidated net profit stood at Rs 1,960.3 crore, as against Rs 4,487.3 crore in the previous fiscal.

In FY23 consolidated total revenue from operations stood at Rs 17,237.4 crore, as compared to Rs 15,109.9 crore in FY22.

Zydus Lifesciences Managing Director Sharvil Patel said the company maintained growth momentum across all key businesses throughout the year, ending the fiscal year on a strong note with steady improvement in profitability and balance sheet health.

On the outlook, he said, "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."

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