Hikal posted revenue of INR 5,325mn with 40.5% YoY growth which was above our estimate of INR 4,859mn mainly driven by strong growth in the both Pharmaceutical and Crop protection segment. On segmental performance: The crop protection segment grew by 54% (YoY) to INR 2348mn on the back of strong volume growth in existing products and commercialization of a new product from their newly built facility in Panoli Pharmaceutical segment revenue surged by 32% to INR 2,977mn based on increased volumes of existing API Generics and CDMO products. During the quarter, the company has filled US DMF for Favipiravir API to supporting both domestic and global markets. Despite 129bps contraction in gross margin, EBITDA margin managed to improve by 188bps to 20.5%, was 142bps...
in speciality chemical segment and healthy growth in the pharma segment. With improved product mix and additional compensation income from the canceled contract, EBIDTA margin likely to improve by 404bps to 24.4% from 20.3% in Q4FY20. The net profit expected to grow by 85% at...
Sequential improvement in demand and lower base to augur well We expect 4QFY21 earnings for Auto & Auto Ancillary to witness sequential growth driven by healthy volume recovery and cost control measures. Pent-up demand, increased preference for personal mobility and strong rural sentiments has enabled to revive the sector. Ramp-up in production post unlocking measures has helped to fill channel inventory. Tractor, PV and 2W OEMs witnessed good pent-up demand, aided by strong rural and semi-urban markets. CV segment is gradually witnessing a recovery led by increase in construction activities and national infrastructure projects. All such factors are expected to leverage the operational performance of OEMs. However, most of them have taken a price hike across their models to mitigate the risk of commodity costs. Going ahead, the rising case of covid-19 and stringent lockdown measures can impact the overall sales in near term....
We expect the companies under our pharmaceutical coverage to clock 31% (YoY) earnings growth with a 5.5% (YoY) rise in the revenue base due to moderate growth in the domestic market supported by a partial recovery in the acute segment, reasonable traction in the chronic segment. The US revenues are likely to remain subdued impacted by the lack of meaningful launches while overall prescriptions remained low due to a surge in COVID cases during the quarter. We expect continued traction in API sales backed by strong demand. Overall, our pharmaceutical coverage would post Revenue/EBIDTA/PAT growth of 5.5%/33.6%/31.1% YoY in Q4FY21. We expect the EBITDA margin of our coverage universe to improve by 478bps YoY, led by base effect (select pack), cost...
PAN/OX spread during the quarter. Revenue grew by 14% YoY to INR 3148mn mainly driven by better realization due to short supply during Q3 as there is a healthy demand in the Paints and Plasticizers industry. EBITDA surged by 4.6x YoY to INR 963mn (est INR 962mn) with 2438bps YoY expansion in margin from 6.2% in Q3FY20 to 30.6% in Q3FY21 (est. 27.7%). This was mainly due to...
to 18.5% level, which was 111bps higher than our estimate driven by positive operating leverage. SSL Key Data reported a PAT of INR 372mn compared to our estimate of INR 302mn (23% above our estimate) led by operationally strong performance. Management maintained its revenue growth guidance of the mid -teen level. However, trimmed down margin growth guidance to 100bps (from earlier 200bps) YoY for the medium term due to remain competitive in the challenging pricing environment. The company...
Neuland lab (NLL) has posted revenue of INR 2,454mn with a 20.4% YoY increase, which was 14% above our estimate of INR 2,150mn. The revenue growth was mainly driven by strong traction in the CMS (78.6% YoY growth) segment, led by 33 molecules (Development + Commercialize) along with the Speciality API segment, which grew by 20.5% in Q3FY21. EBITDA margin expanded by 510bps to 19% level, which was 76bps higher than our estimate driven by improved product mix. Management is confident to improve margin profile from the current level on the back of strong order book in CMS business, better traction in GDS business, and cost optimization measures. NLL reported a PAT of INR 267mn (up 141% YoY) compared to our PAT estimate of INR 202mn led by operationally...
Granules (GIL) posted revenues of INR 8445mn with 20% YoY growth, which was ~16% above our estimate of INR 7279mn. Revenue growth was mainly driven by increase in the market share of existing products, new customer additions in the API segment and increasing penetration of PFIs as a category. During Q3, FDs grew by 11% (YoY), PFIs grew by 48% (YoY) and API sales were up by 20%(YoY). Gross margin improved (300bps YoY) due to favourable product mix (larger share of FDs and PFIs) and higher capacity utilization. Subsequently, the EBITDA margin expanded by 188bps to 25.1% level was 145bps higher than our estimate supported by improved operational efficiency. As per management EBITDA margin can be sustained between 25% to 27% level as continued traction in the formulation business. GIL reported PAT of INR 1468mn, was above our estimate of INR 993mn...
