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Abbott India: Branded story continues with Q2 revenues on expected lines

News: Revenues grew 15.9% YoY to Rs.1222.1 crore despite continued pressure in top brands such as Duphastan. EBITDA margins declined 157 bps YoY to 21.3% while EBITDA for the quarter grew 7.9% YoY to Rs.259.7 crore. PAT was up 6.4% YoY to Rs.192.3 crore. Delta vis-à-vis revenue was due to lower margins and other income.

Views: 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.