IG Petrochemicals Ltd (IGPL) has reported a seller margin performance led by a sharp surge in PAN/ OX spread and optimum utilization at newly commissioned capacity during the quarter. Revenue grew by 58.1% YoY to INR 4244mn mainly driven by higher realization due to short supply during Q4 as there is a healthy demand in the Paints, Plasticizers and other user industries. EBITDA surged by ~8x YoY to INR 1448mn (est INR 1178mn) with 2815bps YoY expansion in margin from 6% in Q4FY20 to 34.1% in Q4FY21 (est. 30%). This was mainly driven by 2687bps expansion in gross margin (47% vs 20.1% in Q4FY20) supported by improved PAN/OX spreads. Currently, PAN/OX spread is hovering between $250-$350 compared to a 10-year avg of $215 vs ~$320 in FY21 (as per our calculation)....
growth in profitability, healthy balance sheet with improving return ratios, we continue to remain Face Value (INR) optimistic about the mid to long-term growth prospects of the company. The stock has experienced a Average volume significant re-rating in the recent past as the company has been consistently delivering strong growth 3 months along with margin expansion. We foresee a 16.7% revenue CAGR, 277bps margin increase over 6 months FY21-23E. The balance of portfolio among high value and high volume products will help it clock a 1 year faster growth in earnings. Considering better growth visibility, we raised our earnings estimate for...
Healthy Q4; Input cost increase to dent margin in the near term Granules (GIL) posted revenues of INR 7993mn with 33.2% YoY growth, which was 3.7% above our estimate of INR 7710mn. Revenue growth was mainly driven by an increase in the market share of existing products, new customer additions in the API segment and increasing penetration of PFIs as a category. During Q4, FDs grew by 34% (YoY), PFIs grew by 85% (YoY) and API sales were up by 9%(YoY). Better realisations across our existing molecules and new launches contributed to the increase in gross margins by 378bps (YoY). Subsequently, the EBITDA margin expanded by 861bps to a 25.3% level was 167bps higher than our estimate. EBITDA Margin improvement was mainly on account of higher sales and volumes over a lower base of the previous year. The low base of the previous year was...
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...
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...
