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Cadila Heathcare (Cadila HC) post its reorganization and productivity initiatives indomestic formulations space

Cadila Healthcare is India's leading vertically integrated pharmaceutical company. With its presence across the value chain, it manufactures finished dosage forms, active pharmaceutical ingredients, animal healthcare...

Q3FY20 revenues grew 1.7% YoY to | 3638.1 crore (I-direct estimate: | 3439.7 crore). Consolidation of Craft Portfolio was largely offset by 13.4% YoY decline in the US to | 1675.3 crore. Domestic formulations grew 7.6% YoY to | 910.3 crore. EBITDA margins contracted 441 bps YoY to 19.1% (Idirect estimate: 18.8%), mainly on account of higher employee and other expenditure. EBITDA de-grew 17.4% YoY to | 693.2 crore (I-direct estimate: | 646.7 crore). PAT de-grew 26.5% YoY to | 375.2 crore (I-direct estimates:...

We upgrade our Revenues by 1.8%/2.8% in FY20E/FY21E due to upgrade in USand EM business. We downgrade our EBITDAM by 40bps to 18.9% for FY20Ewhile we maintain our EBITDAM for FY21E.

5 February 2020 Cadila Healthcares (CDH) renewed strategy is aiding growth in the domestic formulation (DF) segment. Also, its ANDA launch engine remains strong, which in turn is improving growth prospects for the US market. We maintain our EPS estimates for FY20/FY21/FY22E. We remain positive on CDH on the back of (a) robust ANDA pipeline including complex products like transdermals, and (b) its changed strategy, which is delivering steady pick-up in DF growth. 3QFY20 sales grew 1.7% YoY to INR36.4b (v/s est. INR34b), led by (a) US sales growth of 16% QoQ to INR16.7b (46% of sales), and (b) India branded formulation growth of 9.6% YoY. Gross margin stood at 65.8% and expanded 360bp YoY. EBITDA margin came in at 19.1% and contracted 440bp YoY.

Cadila Healthcare is India's leading vertically integrated pharmaceutical company. With its presence across the value chain, it manufactures finished dosage forms, active pharmaceutical ingredients, animal healthcare...

Domestic formulations and US generics showing improved traction.

Cadila Healthcare Limited (Cadila) reported weak results for Q2FY2020. Revenue at Rs. 3,367 crore grew by 14% y-o-y but marginally missed our estimates. Operating profit at Rs. 626 crore fell by 9% y-o-y and was below our estimates. During the quarter, the company reported an exceptional loss of Rs. 268 crore on account of impairment towards Levorphanol. Adjusted PAT stood at Rs. 351 crore, down 15% y-o-y and was below our estimate of Rs. 365 crore. Following a warning letter from the US FDA, Cadila discontinued...

Q2FY20 revenues grew 13.7% YoY to | 3366.6 crore (I-direct estimate: | 3579.8 crore) mainly due to consolidation of the craft portfolio in the wellness segment. US revenues grew 9.7% YoY to | 1448.4 crore (I-direct estimate: | 1432.1 crore). Domestic formulations grew 9.5% YoY to | 977.8 crore (I-direct estimate: | 955.7 crore). EBITDA margins contracted 464 bps to 18.6% (I-direct estimate: 21.9%), mainly on account of higher other expenditure. EBITDA de-grew 9.0% YoY to | 625.6 crore (I-direct estimate: | 784.0 crore). Adjusted PAT (excluding net impairment charges of | 209.9...

13 November 2019 2QFY20 sales at INR33.6b (in-line) were up 13.7% YoY, largely led by the Consumer Wellness business (sales at INR3.2b YoY v/s INR1.4b last year). API business also supported growth to some extent (+17.9% YoY to INR1b). India formulations grew 10.4% YoY to INR9.8b (30% of sales) for the quarter. US sales at INR14.5b (45% of sales) were up 9.7% YoY. EM sales grew 7.6% YoY to INR2.