For Q1FY21, Zydus Cadila reported a net profit of Rs.454 crores, up by 50% on a YoY basis. Total income from operations for the quarter was Rs. 3640 crores, up 4% on a YoY basis.
The company’s consolidated revenue from operations grew 4 per cent on a yearly basis to Rs 3,639.9 crore, compared to Rs 3,496.3 crore reported in the June quarter of FY20. Sequentially, the revenue from operations dipped 3 per cent from Rs 3,752.1 crore logged in Q4FY20. Earnings before Interest, Depreciation and Tax (EBIDTA) for the quarter was Rs. 815 crores.
| Q1 FY21 | Q4 FY20 | Q1 FY20 | QoQ% | YoY% | |
| Revenue | 3,662.4 | 3,796.4 | 3,658.2 | -3.53% | +4.08% |
| Net Profit/Loss | 469.9 | 413.5 | 364.4 | +13.64% | +49.27 |
The company’s India business which comprises human formulations, consumer wellness and animal health business posted sales of Rs.1486 crores during the quarter. The company’s business in the US posted sales of Rs. 1623 crores, up by 19% on a YoY basis. The company received 12 ANDA approvals (incl. 4 tentative approvals), during the quarter. The company’s rest of the world business grew by 8% during the quarter on a YoY basis and posted sales of Rs. 238 crores.
What can be expected from Cadila?
Cadila just like any other pharma is in a rut to find a COVID-19 Vaccine. The company announced the launch of ZyCoV-D, its plasmid DNA vaccine which was safe and well-tolerated in Phase I clinical trial, the company announced. The company will now commence Phase II clinical trials from the 6th of August, 2020. The market showed fairly high expectations as updates came by for its vaccine trails. So much so that between 31st July and 5th August the share price zoomed (+)11.3%. However, shortly after the results were announced it corrected going from its Intraday High of Rs 411 to Rs 396.
Cadila too, like most major pharma, is in the race for the COVID-19 Vaccine. The results of which can have a major effect on world markets. The company has a good history in terms of vaccines considering that it was the first company to make a successful Swine Flu Vaccine in India, tetravalent seasonal influenza vaccine and inactivated rabies vaccine, to name a few. The multibagger factor for Cadila depends on whether or not the final trails for its COVID-19 vaccine goes well.