Ranvir’s Portfolio

Zydus Lifesciences –

Q1 concall and results highlights –

Revenues- 6207 vs 5139 cr, up 21 pc
Gross Profits- 4621 vs 3465 cr (margins @ 74 vs 68 pc)
EBITDA- 2084 vs 1505 cr, up 38 pc ( margins @ 33 vs 30 pc )
PAT- 1419 vs 1101 cr

R&D expenses @ 392 vs 323 cr ( @ 6.3 pc of sales )
Organic Capex @ 301 cr
Net Cash on books @ 1892 cr
Company deleveraged its balance sheet by paying down the entire debt on books

Geography wise business breakup –

US – 51 pc of sales, up 26 pc. Launched 07 new products. New launches include second 505(b)(2) product – Zituvimet – should be a meaningful product for next 3-5 yrs

India formulations – 23 pc of sales , up 13 pc. Launched 10 new products ( including line extensions ) with 3 – first in India launches. Retained leadership in Nephrology, remained fastest growing company in Oncology

Share of Chronic portfolio in India formulations @ 42 pc ( up from 38 pc – 3 yrs back )

9 brands with sales > 100 cr
11 brands with sales between 50-100 cr

India Consumer wellness – 14 pc of sales, up 21 pc – driven by 17 pc volume growth

Europe and RoW formulations – 10 pc of sales, up 9 pc

APIs – 2 pc of sales, up 2 pc

Two of company’s Injectable facilities in Gujarat are under OAI classification by US FDA – a key monitorable

Q1 was exceptionally good Qtr wrt EBITDA margins. Looking to clock 28-29 pc EBITDA margins for full FY 25

Management is confident of delivering high teens topline growth in FY 25

Guiding for a full year R&D expenses of around 8 pc of sales for FY 25

Revlimid sales in US in Q1 were higher vs Q4. Also, there was a ramp up in the base business as well

Expecting to launch 25 new products in US in FY 25

Aim to use the cash on books towards building a speciality business in both US and India

Company is confident of clocking double digit revenue growth with increased / enhanced profitability in the Europe + RoW business for next 3-5 yrs. Aiming to enter more geographies and introducing new products here

Hopeful of launching Saroglitazar in US sometime in FY 27. Along with Saroglitazar, company hopes to acquire another commercial NCE asset ( in the orphan drug space ) which can be launched along with Saroglitazar so that the company’s front end can be be used effectively

Company believes that their product line up and some product settlements that are lined up in next 1-2 yrs, should allow them to keep growing even in FY 27 ( once the Revlimid opportunity is over at the end of FY 26 ). If the management is able to grow the business in FY 27/ 28 ( despite Revlimid opportunity in the base ) – that would be a big achievement – IMHO

Disc: holding from lower levels, biased, not SEBI registered, not a buy / sell recommendation