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News: Revenues grew ~12.5% YoY to ₹ 2204.2 crore on the back of ~13% growth in the CDMO business (59% of sales) to ₹ 1278 crore. Complex Hospitals Generics (29% of sales) on the other hand grew 14% to ₹ 654 crore and India Consumer Business (12% of sales) grew ~10% to ₹ 278 crore. EBITDA grew ~26% YoY to ₹ 337.7 crore with 162 bps margin expansion to 15.3% driven by better operating leverage and despite 209 bps de-growth in GPM.
View: CDMO business was driven by order inflows, especially for on-patent commercial manufacturing. The company also witnessed good demand for differentiated offerings with increase in customer enquiries and visits. In India Consumer Business, growth was driven by new launches and 18% growth in power brands. In Complex Hospitals Generics, the growth was driven by volume growth in inhalation anesthesia portfolio in the US and emerging markets. Overall, we expect CDMO momentum to continue which remains key for the improvement in overall financials. We will wait for more insights from the management Concall.
Impact: Positive