You are here: Home » Markets » News
Business Standard

Cadila Healthcare rallies 9% on strong September quarter results

In Q2FY21, Cadila's Ebitda margins improved by 370 basis points at 22.6% against 18.9% in Q2FY20.

Topics
Cadila Healthcare  | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

Cadila Healthcare

Shares of rallied 9 per cent to Rs 445.60 on the BSE on Tuesday as the company reported strong results in the September quarter (Q2FY21), with net profit after adjusting for exceptional items jumping 73 per cent year-on-year (YoY) at Rs 562 crore, on the back of healthy revenue. The pharmaceutical company's stock was trading close its 52-week high level of Rs 447.95, touched on October 9, 2020.

The company’s consolidated revenues during the quarter grew 13.5 per cent YoY to Rs 3,820 crore against Rs 3,367 crore in Q2FY20. US sales grew a robust 18 per cent YoY to Rs 1,709 crore, while domestic formulations grew 11.2 per cent YoY to Rs 1,087 crore.

In Q2FY21, the Ebitda (earnings before interest, taxes, depreciation, and amortisation) margins stood at 22.6 per cent during the quarter, which improved significantly by 370 basis points compared to 18.9 per cent registered in Q2FY20. The margins improvement was due to lower employee and other expenses.

During the quarter, the company launched 6 new products in the US. The Company received approval for 10 new products (incl. 2 tentative approvals) and filed 5 additional Abbreviated New Drug Applications (ANDAs) with the U.S. Food and Drug Administration (USFDA) during the quarter.

“Q2 revenues were above estimates on all fronts due to better than expected operational performance, lower interest expense. On the US front, Cadila plans to venture into complex injectables, which is likely to provide meaningful traction from FY23-24 onwards. Similarly, addition of biosimilars for Emerging is expected to provide growth impetus, going ahead. The wellness segment performance hinges upon its marketing & distribution prowess besides effective product positioning. India formulations business, after recent restructuring, may stabilize,” ICICI Securities said in a note.

However, more importantly, Cadila has significantly improved net debt position in H1FY21 (down 40 per cent from FY20) utilising proceeds from QIP of consumer wellness business and through internal accruals amid better working capital control. Overall, continued b/s reduction, Moraiya warning letter resolution, US base business performance in tough times are some important aspects to watch, it said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, November 03 2020. 09:35 IST
RECOMMENDED FOR YOU
.