- 30 Aug 2022
- ICICIdirect Research
P&G Health reports steady revenues, margins in Q4FY22PGHL - 4896 Change: -5.65 (-0.12 %)
News: P&G Health's Q4FY22 (July-June fiscal year) revenue increased 4% YoY to Rs 296 crore while domestic formulations was up 8% YoY. EBITDA margins improved 323 bps to 20.2% while EBITDA grew 23% YoY to Rs 60 crore. Subsequently, PAT expanded 21% YoY to Rs 41 crore. Board of Directors of the company recommended final dividend of Rs 11.5 per equity share for FY22.
View: Despite high inflationary pressures, P&G Health sales grew 10.5% to Rs 1114 crore in FY22 with EBITDA margins at 24.1%. P&G Health's Q4 revenues were in line with our expectations even when operations in Sri Lanka was impacted due to challenging environment. EBITDA margins came in lower mainly due to higher other expenditure amid normalisation in marketing and promotional activities. On growth front, the company’s core therapy - VMS (65% of topline) has been muted YoY due to higher base. P&G Health possess MNC pharma traits like strong brand stickiness, growth, earnings visibility, strong b/s, etc. The key differentiator for P&G Health is that its core category is VMS and amid increasing demand for daily supplementation, the company is focused on executing its strategy of offering superior brands, driving productivity, increasing reach, and improving awareness.