Zydus Wellness
This Ahmedabad based company, Zydus is a 70.24% subsidiary of Cadila Healthcare, a healthcare, nutrition and cosmeceuticals company operating in the niche segment of health, fitness and lifestyle. With brands like Sugar Free, Ever Yuth and Nutralite, the company declared its Q1FY15 numbers during market hours and they were disappointing. Its consolidated net profit for the quarter fell 25% (YoY) at Rs.17 crore and net sales declined 6% at Rs.107 crore. The fall in net profit would have been higher but for the 4% drop in total operating expenses. In Q1FY14, the company had a tax refund to the tune of Rs.6 crore and this helped boost the bottomline, unlike current Q1, where there is an outgo of Rs.2 crore.
The other news in the company was that the current CMD, Pankaj R Patel has handed over the reins of personal care products to his son Sharvil P Patel, who will now take over as the chairman of the board of directors with effect from yesterday. The company has operations across US, Europe, Japan, Brazil, South Africa and 25 other emerging markets. And it was in Q4FY14 that it decided to quit from Japan. Zydus had acquired Nippon Universal Pharmaceuticals in 2007 to strengthen its base in the country and looks like that did not work out. Promoters stake as at 30th June 2014 stands at 72.54%, FIIs hold 7.99% while DIIs hold 6.64%.