Pharmaceuticals firm Zydus Lifesciences Limited reported a 41.47 per cent decline in net profit of Rs 397.4 crore for the fourth quarter ended March on Friday, driven by higher spending and one-off inventory provisions.
The company posted a consolidated net profit of Rs 679 crore in the same quarter of the previous financial year, according to a regulatory filing by Zidas Lifesciences.
The total revenue collected from the activities under review during the quarter stood at Rs 3,863.8 crore as against Rs 3,670.3 crore in the same period a year ago, it added.
The total expenditure for the quarter was Rs 3,370 crore, up from Rs 3,019.3 crore in the year-ago period, up from Rs 961.2 crore in the same period of the previous fiscal, to Rs 1,087 crore.
The company spent Rs 120 crore in the quarter to change the inventory of finished products, work in progress and stock in trade.
For the fiscal year ended March 31, 2022, the combined net profit was Rs 4,487.3 crore as against Rs 2,133.6 crore in FY21.
The total revenue collected from operations in FY22 was Rs 15,265.2 crore as against Rs 14,403.5 crore in FY21.
“We are satisfied with our operational performance in the face of geopolitical instability due to supply chain challenges and inflationary pressures. Our core businesses have performed well with the help of agile supply chains that have maintained profits,” said Sharville Patel, managing director of Zydus Lifesciences.
He added, “Although the quarterly reported margins were affected by the provisions relating to one-point inventory, the adjusted profit was above 20 per cent.”
In the fourth quarter, the company reported revenue of Rs 1,797 crore from its ‘Indian Geography’ business, up 11 per cent from the same period last year.
Similarly, the emerging market formulation business comprising key markets including Sri Lanka, Philippines, Brazil, South Africa and Mexico has generated revenue of Rs 275 crore, an increase of 10 per cent.
The US formulation business, on the other hand, had revenue of Rs 1,423.3 crore, down 4 per cent, the agency said.
Noting that the company’s innovation efforts are on track to build a strong pipeline for the future, Patel said, “We are committed to implementing our pipeline for sustainable growth.”
Zydus Lifesciences says its board has approved a proposal to buy back just over 1.15 crore shares, representing up to 1.13 per cent of the company’s total paid-up equity share capital, up to a total of Rs 750 crore. .
It added that the board has recommended a final dividend of Rs 2.50 per equity share, subject to shareholder approval at the upcoming AGM to be held on August 10, 2022.
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