Zydus Wellness Ltd reports Q3FY21 earnings

Zydus Wellness Ltd., announced results for the third quarter ended 31st December 2020. The company reported 15.6% growth in consolidated net sales which stood at Rs.3764 million. The Company reported consolidated income from operations at Rs.3816 million, up by 14.7%. EBIDTA was up by 32.7% y-o-y to Rs.495 Million. In line with its strategic initiatives to pare down the debt, the Company during the quarter has fully redeemed Nonconvertible debentures of Rs.15000 million. In the process of buying back its own Nonconvertible debentures the Company has paid one-time debenture redemption premium Rs.1321 million out of which Rs.342 million is recorded as exceptional item in our financials for the current quarter. As a result of this exceptional item the Profit after Tax (PAT) stood at Rs.17 million for the quarter.

Five of the Company's brands Glucon-D, Sugar Free, EverYuth Scrub, Peel Off Face Mask and Nycil maintained their leadership positions in their respective categories.

Sugarfree witnessed a strong double digit growth. Innovative campaigns like #SugarFreeChef activation on Diwali and #21DayNoSugarChallenge were launched on digital media. Sugar Free also launched Sugar Free D'lite dark chocolates in domestic markets through ecommerce platform which was supported with a digital campaign and marketing initiatives across Ecommerce portals. A unique influencer led #SugarliteStringTest campaign was executed in digital during the festive season to build advocacy and adoption.

EverYuth Scrub is the leading brand with a market share of 34.8%. The quarter marked the launch of Aloevera Gel in this category. In the Prickly heat powder category Nycil leads with a market share of 35.7%, which is an increase of 213 basis points over the same period last year. Glucon-D has maintained its number one position with a market share of 58.3%. Glucon-C ImmunoFizz was launched in Dec'20 to tap market of "Immunity Booster" product in effervescent format.

In the Malted Food Drink category, Complan has a market share of 5.5%. The company's promotional campaign on Complan has focussed on the product's nutritional superiority through multiple media.

The demand for Nutralite has been steadily increasing and there has been sequential improvement across the portfolio including institutional business. Mayo portfolio, especially retail business, delivered good performance because of increased demand for the category Nutralite Choco Spread, continued to deliver steady business on E-Commerce and Modern Trade channels.

Shares of ZYDUS WELLNESS LTD. was last trading in BSE at Rs.1965 as compared to the previous close of Rs. 1932.25. The total number of shares traded during the day was 1218 in over 254 trades.

The stock hit an intraday high of Rs. 1968.4 and intraday low of 1912. The net turnover during the day was Rs. 2372392.

Source : Equity Bulls

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