- 30 May 2024
- ICICI Securities
IPCA Q4FY24 - GROWTH DRIVEN BY FORMULATIONS AND UNICHEM; MARGINS STILL MUTED
IPCALAB - 1515 Change: 23.45 (1.57 %)News: Revenues grew ~35% YoY to ₹ 2033 crore driven by formulations growth and Unichem integration. Formulations grew 12% YoY to ₹ 1163 crore, driven domestic growth of 13% to ₹ 690 crore, Generic exports growth of 15% to ₹ 230 crore, Institutional exports growth of 7% to ₹ 81 crore and Branded exports growth of 4% to ₹ 162 core. APIs on the other hand de-grew 4% to ₹ 334 crore. Standalone revenues (ex-Unichem and other subsidiaries) grew 8% YoY to ₹ 1511 crore. EBITDA grew 78% YoY to ₹ 322 crore on a lower base while EBITDA margins improved 386 bps to 15.8%. EBITDA growth was mainly driven by strong GPM improvement (~537 bps YoY to 66.3%). PBT grew 65% to ₹ 213 crore.
Views: Domestic formulations growth of ~13% was one of the highest among peers in Q4 driven by strong Zerodol franchisee in pain management. However, exports remain volatile. And after Unichem acquisition which is entirely export focused, the contribution of high-margin domestic formulations has gone down further (from 45% to 33%). This has impacted the margins trajectory. Going ahead, improvement in margins to weigh on investors sentiments.
Impact: Neutral