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...
increase in KSM prices (mainly PAP) and loss of MEIS benefit (~150bps). Favourable forex and Air freight collected from customers was part of Sales which was added to Gross margin in Stock Q1FY21. However, EBITDA Margin managed lesser impact (decline of 126bps to 23.7% in Q1FY22 ) CMP (INR) due to lower other expenses (-4%YoY). GIL reported a PAT of INR 1202mn, which was above our Target Price (INR) estimate of INR 1018mn driven by ordinary operational performance. As per management, the KSM BSE code supply situation is likely to improve with an increase in the number of domestic suppliers and the recommencement of supply from the Chinese source. The management has stated that it is looking to decrease the share of core molecules from 84% currently to 60% by FY25 with focusing on launching higher-margin products across different geographies....
Solid Q1=Low base coupled with Healthy demand momentum in domestic/export market We expect the companies under our chemicals coverage to report solid revenue growth (65.1%YoY) in Q1FY22 with 141.8% growth in profitability, mainly led by restoration of demand in end -user industries and low base (covid-19 had posed challenges in Q1FY21). We expect higher double-digit volume growth for most companies under our universe. Increased freight costs due to severe disruptions on supply routes impacted imports (since the last few quarters), leading to a surge in selective chemical prices in the domestic market. The growth trajectory from the export market looks promising with the commissioning of new capacity for selective players. We believe most of the...
We expect the companies under our pharmaceutical coverage to clock 38.8% (YoY) earnings growth base effect. Currency appreciation could improve the top line by 1.8% on a YoY basis. Overall, our pharmaceutical coverage would post Revenue/EBITDA/PAT growth of 14.2%/23.8%/38.8% YoY in Q1FY22. We expect the EBITDA margin of our coverage universe to improve by 176bps YoY, led by We expect Aurobindo Pharma's revenues to grow by 5.6% YoY to INR 61.6bn. US sales are expected to decline due to Natrol divestment and price erosion. The EU is expected to grow faster YoY supported by currency tailwinds and a lower base. EM and ARV to grow at a steady pace. The company's EBITDA margin to decline by 49bps due to higher R&D; spends and other expenses. PAT...
Fermenta Biotech Ltd (FBL) has posted revenue of INR 995mn with a 54.1% YoY increase, which was 15.8% above our estimate of INR 859mn. The revenue growth was mainly driven by strong traction in Human VD3 business and higher contribution from Fish Oil Cholesterol. In Q4 FY21 the volumes of Human Vitamin D3 40 MIU were higher by 101% over Q4 FY20, while the volumes of Animal Vitamin D3 Feed 500 were lower by 14% over Q4 FY20. While on an annual basis, the volumes and average prices of Human Vitamin D3 40 MIU were higher by 71% and 4% respectively over previous year, however the volumes and average prices of Animal Vitamin D3 Feed 500 were under pressure and were lower by 35% and 17% respectively over previous year. Reported EBITDA margin contracted by 439bps to 10.2% level impacted largely due to 1284bps decline in the gross margin impacted by higher contribution from Fish Oil Cholesterol with low margin. Management is confident to improve margin profile from the current level on the back of strong traction in Human VD3, demand recovery in...
Fine Organic Industries (FOIL) posted revenue of INR 3,229mn with a 30.6% YoY increase, which was 9.2% above our estimate of INR 2,958mn. The revenue growth was mainly driven by better realization supported by the price increase. FOIL has witnessed a sharp increase in key raw materials...
