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Strong growth in Europe, India and RoW markets... Q3 revenues grew 12.4% YoY to | 4942 crore (I-direct estimate: | 5014 crore). Domestic revenues grew 25.6% YoY to | 959 crore due to Wockhardt integration and new product launches. Europe revenues grew 33.9% YoY to | 414 crore due to new launches. US revenues grew 8.7% YoY to | 1739 crore on the back of new product launches, favourable forex rate partly offset by price erosion. Adjusting for impairment charge of | 597.2 crore in Q3FY21, | 1320 crore in Q3FY20, EBITDA margins were down 46 bps YoY at 23.0% (I-direct estimate: 23.4%) due to lower gross margins amid price erosion, higher freight charges. Hence, EBITDA grew 10.2% YoY to | 1136 crore vs. I-direct estimate of | 1172 crore. Adjusted PAT grew 7.2% YoY to | 685 crore. US, key growth driver with promising launches ahead US remains a key driver, contributing ~37% to revenues as of FY20. DRL has a strong pending pipeline comprising 89 ANDAs (48 Para IV filings, 24 FTFs) and two NDAs under 505 (b) (2) route. We expect US sales to grow at a FY20-23E CAGR of 9% to | 8329 crore on the back of new launches.
