- 11 Aug 2022
- ICICIdirect Research
Abbott posts steady revenues amid dip in marginsABBOTINDIA - 21540 Change: 48.55 (0.23 %)
News: Revenues grew 7% YoY to Rs 13404 crore. EBITDA margins contracted 104 bps YoY to 20.7% mainly on the back of higher other expenditure. EBITDA for the quarter grew 2% YoY to Rs 270 crore. PAT was up 5% YoY to Rs 206 crore.
View: Abbott India’s numbers were below our estimates on both revenues and margins front. We attribute steady quarter due to high base in VMN therapies last year while top brands like Thyronorm, Udiliv and Ryzodeg are seeing robust growth. Notwithstanding quarterly gyrations, we remain positive on the company due to its robust and sustainable business model backed by stable growth, debt-free b/s, favourable market dynamics with doctor prescription stickiness and lower perceived risk factors. We continue to believe in Abbott’s strong growth track in power brands and capability of new launches on a fairly consistent basis.