ZIM Laboratories Limited held an earnings conference call for Q4 & FY25 on May 22, 2025.
FY25 was a pivotal year marked by strategic execution and business expansion.
In Q4 FY25, the Total Operating Income was ₹1,087 million with EBITDA and PAT margins at 15% and 4.5%, respectively.
For the full year FY25, total revenue reached ₹3,790 million with an EBITDA margin of 13.1% and a PAT margin of 3.2%.
The Pharmaceutical business contributed 75% of the total revenue, while Nutraceuticals accounted for 25%. Export markets contributed 83% of the total revenue.
New Innovative Products (NIP) and Oral Thin Films (OTF) sales accounted for ₹624 million, or 16.5% of total revenue. NIP contributed ₹437 million, while OTF contributed ₹186 million.
Licensing and co-development partnerships, especially in regulated markets, accounted for ₹98 million in NIP plus OTF contributions.
Strategic collaborations included a partnership with a local UAE company to scale the Oral Thin Film footprint across the GCC region.
A scientific office was established in the Middle East, and focus was maintained on the Australian subsidiary, ZIMTAS Pty. Limited, with regulatory filings in progress.
In FY25, 23 NIP filings for 6 molecules, 17 OTF filings for 5 molecules, and 10 FF filings for 5 molecules were completed in regulated, Pharmerging, and RoW markets.
Marketing authorization was received for Azithromycin oral suspension and Dimethyl Fumarate NIP. A partner secured approval for buprenorphine sublingual film OTF across Europe.
Revenues reached ₹665 million from the business front, contributing 17% to the total operating income.
Key CapEx projects were completed, including a dedicated urology suite for NIP products and a specialized liquid in pellet technology suite.
R&D investments accounted for 8.8% of total operating income.
The pipeline includes 12 NIP products with development of 8 already completed.
The Total Operating Income stood at ₹1,087 million, reflecting a 12.9% increase on a quarter-to-quarter basis and a 7.7% decline on a year-on-year basis. EBITDA came in at ₹163 million, up by 22.5% sequentially, though 5.2% lower on a year-to-year basis. EBITDA margin for the quarter improved to 15%. PAT that is Profit After Tax, was at ₹49 million, marking a 22.1% increase on a quarter-to-quarter basis, but a 39.7% decline compared to Q4 FY24. The PAT margin stood at 4.5%.
The Pharmaceutical business contributed to ₹891 million, accounting for 82% of the total operating income, reflecting a 20.6% from the growth over the previous quarter and an 8.8% decline compared to the same quarter last year.
The Nutraceutical business contributed about ₹196 million, comprising 80% of total operating income. The R&D investment during the quarter stood at ₹76 million, accounting for 7% of the total operating income. The CapEx for the quarter was ₹65 million, primarily directed towards infrastructure upgrades and specialized facility enhancement.
The total operating income for the Financial Year 25 stood at ₹3,790 million, reflecting a 3.2%year-on-year growth from ₹3, 674 million in last year. EBITDA increased by 6.4% to ₹495 million, up from ₹465 million in the previous year with an improvement of EBITDA margin, improved EBITDA margin of 13.1%. PAT for the yearwas ₹122 million, resulting in a PAT margin of 3.2%.
The domestic market recorded ₹665 million, contributing 17% of the total operating revenue - total operating income. Annual CapEx amounted to ₹365 million, supporting capacity expansion and product development.
The finance cost increased to ₹114 million, up from ₹69 million in last year primarily due to increased borrowing, the gearing ratio stood at 44% with total borrowing at ₹1, 122 million.
Management Commentary: Dr. Anwar Daud mentioned that the company is in the stage of a pivot, letting go of some businesses that don't align with ZIM's future vision. The strategy involves shifting from old legacy products to New Innovative Products, increasing business, forming tie-ups with strategic partners, and focusing on products that the company has the strength to develop.
Future Guidance: The company expects a 25%-30% growth in FY26-27, with margins increasing to 15%-17%.