Zydus Cadila Q2 net rises 30%

Mumbai: For the quarter ended 30 September 2003, Zydus Cadila has posted sales of Rs 318.3 crore, up 12 per cent from Rs 284.2 crore in the same quarter of the last year. The net profit of Rs 39.4 crore was up by 30 per cent year on year (y-y) from Rs 30.3 crore in Q2 2002-3.

An increase in the net margin to 12.4 per cent compared to 10.6 per cent last year comes in spite of providing for a 50-per cent higher depreciation and 84-per cent higher provision of income tax of Rs 13.2 crore and Rs 9.5 crore, respectively, in the second quarter compared to Rs 8.8 crore and Rs 5.1 crore, respectively, in the same quarter last year.

The profit before interest, depreciation and tax (PBIDT) was up by 23 per cent y-y to Rs 70.2 crore from Rs 57.2 crore last year. The increase in operating margins was mainly contributed by savings in the material cost and the dividend income of Rs 10 crore from its 50 per cent owned joint venture, Zydus Altana Healthcare. The improved performance comes despite a doubling in the research and development expenditure, compared to the previous quarter last year.

The robust growth comes on the heels of healthy performances in  both the domestic sector and exports. While the domestic sales growth was 8 per cent (against a total market growth of around 5 per cent), the total export growth was up by a whopping 36 per cent compared to the same quarter in 2002-3.

For the half-year ended 30 September 2003, the sales revenue was Rs 608.7 crore, up 16 per cent from Rs 523.4 crore in H1 2002-3. While the domestic sales growth was 12 per cent compared to the corresponding period in 2002-3, the total export growth was 36 per cent.

The net profit of Rs 66.6 crore was up 42 per cent y-y from Rs 47 crore in H1 2002-3. The net margin was 11 per cent compared to 9 per cent last year. This is after making higher depreciation and tax provision of Rs 26.2 crore and Rs 17 crore compared to Rs 11.7 crore and Rs 9.7 crore, respectively, in the previous year.