ZYDUS WELLNESS = Q1 FY 11 RESULTS = GOOR PROGRESS FROM Q1 FY 10 = FUTURE LOOKS VERY PROMISING

ZYDUS Wellness Limited

NSE Symbol    ZYDUSWELL

Q 1FY10 REVIEW

INTRODUCTION

Zydus Wellness manufactures markets wellness consumer products in India. Its specialty skincare products include face wash, facial masks, scrubs, sun blocks, winter care body lotion and cream, cleansers and toners, and men skin care comprising face washes, sun blocks, moisturizers, and scrubs under the EverYuth Naturals name;

It offers sugar alternatives and substitutes under the Sugar Free Gold, Sugar Free Natura, Sugar Free Tea'Lite ready to drink and powder drink names.

It provides health foods, like table margarine, poly unsaturated fatty acids, and mono unsaturated fatty acids under the Nutralite name.

Zydus Wellness Limited was formerly known as Carnation Nutra-Analogue Foods Limited and changed its name on January 5, 2009. The company is based in Ahmedabad, India. Zydus Wellness Limited operates as a subsidiary of Cadila Healthcare Limited.

REVIEW OF Q1 RESULTS

Zydus Wellness Ltd., posted excellent results in Q1 of FY 11, with sales up by 36.1% Y-OY to Rs. 87.32 Cr from Rs. 64,15 Cr. Net profit was up by 52.4 % to Rs. 7.65 Cr from Rs. 5.02 Cr (in Q1 FY10).

The growth in topline and bottomline was boosted by the new variants recently launched and a robust performance from the company’s pillar brands - Sugar Free, EverYuth and Nutralite.

The company’s summer launch Sugar Free TeaLite, is positioned at customers who are actively seeking healthier and lighter beverage options beyond the aerated segment. Flavoured sachets of Sugar Free, was another innovation in the sweetener segment.

Sugar Free, India’s largest selling sugar substitute continues to dominate the market. Sugar Free Gold, the aspartame based variant, and Sugar Free Natura, the Sucralose based variant, are expected to improve their performance with the festive season ahead.

EverYuth range of niche skincare products also continued to grow rapidly. Golden Glow Peel Off mask, Face Scrubs and Face Washes maintained their respective market shares.

The Menz range of exclusive skin-care for men continued to gain new grounds. During the quarter, the company also introduced a range of hand sanitisers.

Nutralite - the healthier alternative to butter, also fared well both in the retail and the institutional segments. With a continued thrust on market creation and brand building,

The company says – it aims to be a Rs. 500 crore company by FY 2013-14.

RESULTS IN NUMBERS

We can see the current position from the numbers below and the ratios given – Figures for Q1 FY11, Q4, FY10, their difference in % terms, figures for Q3 FY10, Figures for total FY10 and proportionate difference between (Q1 FY 11 x 4) and FY 10.

Net sales has improved by 38% compared to preceding Qtr and by 31% proportionately compared to FY10.

But, there is a huge increase of 206.8% under Other Expenditure in current Qtr compared to previous qtr and by 74.81% compared proportionately with the whole of FY10.

Due to this item pf other expenditure, the Net profits are down

Net Profit is Rs.7.65 Cr – down by 56.08% from previous qtr( Rs.17.42 Cr) and by 31.41% proportionately compared to FY10 total (Rs.45.27Cr).

Generally, such increase in Other expenditure tend to be a one time affair and subsequent quarters return to normal levels. Thus, there could be excellent results in Q2 FY11.

The extract from the company’s review at the beginning was with Q1 FY2010, which is the corresponding Qtr. With reference to that corresponding Qtr, the performance is very good. The company is expanding its sales every quarter in an excellent manner. Future appears to be quite promising.

ZYDUS WELLNESS	Jun-10	Mar-10	Dif%1	Dec-09	FY10	Dif%2
Net Sales	8732	6341	37.71	7509	26752	30.56
Other Optg Income	9	26	-65.38	25	55	-34.55
SIT & WIP	193	-236	-181.8	-146	-510	-251.37
Raw Materials	861	1039	-17.13	1220	3735	-7.79
Traded Goods	1785	1304	36.89	1356	5397	32.3
Employees Cost	283	223	26.91	246	931	21.59
Depreciation	35	35	0	34	159	-11.95
Other Expen	4602	1500	206.8	2787	10530	74.81
Total Expenditure	7759	3865	100.75	5497	20242	53.32
O P T	982	2502	-60.75	2037	6565	-40.17
Other Income5	165	215	-23.26	134	595	10.92
P B I & EI	1147	2717	-57.78	2171	7160	-35.92
Interest6	2	5	-60	2	9	-11.11
ProfitA I B B EI	1145	2712	-57.78	2169	7151	-35.95
Profit before tax	1145	2712	-57.78	2169	6931	-33.92
Tax expense	380	970	-60.82	737	2404	-36.77
Net Profit after tax	765	1742	-56.08	1432	4527	-32.41
Extraordinary Items	-	-		-	-
Net Profit	765	1742	-56.08	1432	4527	-32.41
Dividend (%)	-	30		-	30
Face Value	10	10	0	10	10
Paid Up Equity	3907	3907	0	3907	3907
Reserves	-	-		-	6151
Basic EPS A EI	1.96	4.46	-56.05	3.67	11.59	-32.36
Diluted EPS A EI	1.96	4.46	-56.05	3.67	11.59	-32.36
Basic EPS B EI	1.96	4.46	-56.05	3.67	11.59	-32.36
Diluted EPS B EI	1.96	4.46	-56.05	3.67	11.59	-32.36
Public holding (%)	27.49	27.49	0	27.49	27.49

ANNOUNCEMENTS

TO THE NSE

4-08-2010          Zydus Wellness Limited has submitted to the Exchange vide its letter dated August 10, 2010 a copy of investors presentation proposed to be made by Mr. Anand G. Deo, Managing Director of the Company to certain investors of the Company.

16-07-2010        Zydus Wellness Limited has informed the Exchange regarding a press release dated July 16, 2010, titled "Zydus Wellness' Net Profit up by 52.4% in Q1".

28-04-2010        Zydus Wellness Limited has informed the Exchange regarding a press release dated April 28, 2010, titled "Zydus Wellness' Net Profit jumps by 90% in FY'10".

28-04-2010        Zydus Wellness Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on April 28, 2010 have recommended a dividend of Rs.3/- (At the rate of 30%) per equity share on 39072089 equity share of Rs.10 each.        -

25-01-2010        Zydus Wellness Limited has informed the Exchange regarding a press release dated January 25,2010, titled "Zydus Wellness' Net Profit up by 105 % in Q3".

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