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Entry Price

4,997.00

Target

5,890.00

Recommend Date

02-11-2020

Return

17.87 %
BUY

Date : 02-11-2020

Q2FY21 revenues grew 5% YoY to | 595 crore. Adjusting for divesture of rights & interests in certain brands and Covid-19, YoY growth for the quarter was at 10.1%. Also, hospital and vaccines business reflected improved performance due to easing of lockdown. EBITDA margins expanded 520 bps to 34.1% YoY due to a better overall operational performance. Decline in other expenses is likely on account of lower promotional & marketing activities. Hence, EBITDA grew 23.8% YoY to | 203 crore. However, PAT degrew 14.8% YoY to | 131 crore. Delta vis-à-vis EBITDA was due to lower other income, higher tax rate (28.2% vs. 14.9% in Q2FY20).