estimates. The company has posted revenue of INR4,711mn with 21.6% YoY growth which was 12.2% above our estimate of INR 4,198mn. Revenue beat was mainly driven by optimum utilization of PA4 and a sharp increase in the MA realization. Despite increased contribution from high margin product (MA), gross margin witnessed 449bps contraction on QoQ basis, and 167 bps decline on YoY basis due to contraction in PAN/OX spread. EBITDA surged by 133% YoY to INR 975mn (est INR...
Sequent Scientific (SSL) has posted revenue of INR 3,506mn with a 1.2% YoY increase, which was 13% above our estimate of INR 3,102mn. The revenue beat was mainly driven by higher than expected growth in formulation business; However, API business de-grew by 10.4% (YoY) due to lower offtake of Albendazole (key product in API). The formulation business grew by 6.1% (YoY), led by strong performance in LATAM (+34.5% YoY) and Europe (+10.3%). India business growth moderated (+4.2%) due to the base effect of Zoetis commercialization in Q2FY21. Currency depreciation overshadows double-digit growth in Turkey business (de-grew by 6.6% YoY). Revenue from Emerging markets declined by 23.4%. Management expects a strong recovery in the API business during the second half of the year. EBITDA margin witnessed a sharp contraction of 1067bps to 5.6% level (lowest in last four years), which was 632bps lower than our estimate due to negative operating leverage in API business and higher employee cost (due to ESOP). Despite income tax credit (tax rate 250% vs 20.7% in Q2FY21), reported PAT came at INR 143mn (-52.8% YoY) compared to our expectation of INR.159mn due to operationally weak performance. Management maintained revenue...
Transpek Industry Limited (TIL) has posted revenue of INR 1,217mn with a 63% YoY increase, which was 4.3% above our estimate of INR 1,167mn. The revenue growth was mainly driven by strong volume recovery in key products as higher off-take from MNC customers. EBITDA margin for the quarter stood at 14.8% lower than our estimate of 18.4% (EBITDA margin of 18.2% in Q4FY21, 11.9% in Q1FY21) due to an increase in key raw material costs along with higher freight cost. However, the management is confident of improving the margin profile from the current level (guided 16-20%) on the back of demand recovery in end-user industries and new product launches in the high margin category. TIL reported a PAT of INR 135mn compared to our estimate of INR122mn...
Fine Organic Industries (FOIL) posted revenue of INR 3,576mn with a 49% YoY increase, which was 5.6% above our estimate of INR 3,387mn. The revenue growth was mainly driven by better realization supported by the price increase and partially due to new product introduction. Export volume grew at a better pace with a contribution of 62% compared to 55% in Q1FY21. However, domestic sales did not pick up and remained flat during the quarter due to the lockdown restrictions. FOIL has witnessed a increase in key raw material costs along with higher freight cost. Despite taking price increase by re -negotiation with some of its customers, continued increasing input cost severely impacted its gross margins by 673bps (YoY), which resulted in 732bps (YoY) contraction in EBITDA margin to 14.5%...
Fermenta Biotech Ltd (FBL) has posted revenue of INR 1,096mn with a 16.1% YoY increase, which was 8.5% above our estimate of INR 1,011mn. The revenue growth was mainly driven by strong traction in the Human VD3 business and higher contribution from Fish Oil Cholesterol. In Q1FY22 the vitamin D3 (VD3) business contributed 77% to the overall revenue. The revenue ratio of VD3 between Human Nutrition & Animal Nutrition has moved from 47:53 in Q1FY21 to 77:23 in Q1FY22 in favour of Human Nutrition. Volumes of Human Nutrition VD3 continue to grow Q-o-Q and Y-o-Y while that of Animal Nutrition continues to show a decline. EBITDA margin for the quarter was 23.5% better than our estimate of 21.1% (EBITDA margin of 10.2% in Q4FY21, 23.7% in Q1FY21) supported by margin...
Hikal posted revenue of INR 4,568mn with 29.5% YoY growth which was slightly below our estimate of INR 4,627mn on account of lower production days due to the unavailability of oxygen for industrial use. On segmental performance: The crop protection segment grew by 31% (YoY) to INR 1,827mn on the back of Increased sales volume of existing as well as new products. Pharmaceutical segment revenue surged by 28% to INR 2,741mn based on increased volumes of existing API Generics and CDMO products. EBITDA margin improved by 607 bps to 21%, (was 277bps above our estimate) supported by a favourable product mix. EBIT margin of the Crop protection segment improved by 532bps (YoY) with 40% (vs 43.6% in Q1FY21) contribution to overall EBIT. The pharmaceutical...
commercial revenue (-24% YoY). As per our understanding, the company has not made any shipment Stock of its one key product (24% of CMS revenue ) in this calendar year. Reported EBITDA margin contracted by 369bps to 12.8% level (vs our estimate of 15.3%) impacted largely due to Increase in raw material prices and upfront costs for certain projects. However, management is confident of improving margin profile from the current level on the back of a strong order book in CMS business, better traction in GDS business, and cost optimization measures. NLL reported a PAT of INR 87mn...
