Zydus Wellness FY21 net profit falls 16% to Rs 119 cr

Zydus Wellness on Monday reported a 16 per cent year-on-year decline in its consolidated net profit for financial year 2020-21 at Rs 119 crore.

The company's net profit would have been about 35 per cent higher at Rs 251 crore if not for exceptional item of Rs 132 crore during the year.

"The secured non-convertible debentures that were previously issued by the company has been purchased by its subsidiary company from the market aggregating to Rs 1,105 crore and Rs 395 crore in the respective quarter ended September 30, 2020 and December 31, 2020. The company has redeemed all the NCDs of Rs 1,500 crore and the premium amount paid towards purchase of the above NCDs are expensed off as an exceptional items in the aforesaid results for the year ended March 31, 2021," Zydus Wellness said.

The company's total revenue rose 5.5 per cent to Rs 1,875 crore during FY21.

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For January-March quarter, the consumer wellness company's net profit grew over 92 per cent to Rs 133 crore, while total revenue rose 24 per cent to Rs 608 crore.

Zydus Wellness said five of its brands -- Glucon-D, Sugar Free, EverYuth Scrub, Peel Off Face Mask and Nycil -- maintained their leadership positions in-their respective categories as on March 2021. During the quarter, the company also forayed in the dairy segment with launch of two new products under the 'Nutralite' brand.

Zydus Wellness said it increased its direct distribution by more than 50 per cent and is now directly servicing 5.5 lakh retail outlets. "E-commerce grew by more than 250 per cent for the financial year accounting for almost 3.6 per cent of the domestic revenue."

Its international business, which accounts for more than 3 per cent of consolidated revenue, also grew by 200 per cent during the year, with the company making entry in countries like Nigeria and Taiwan.

Zydus Wellness' board declared a final dividend of Rs 5 per share for FY21. The company's shares closed 0.20 per cent lower at Rs 2,108.95 on the BSE on Monday.

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