New York: 07:23 || London: 10:23 || Mumbai: 15:53 || Singapore: 18:23

Recommendations India

Alembic Pharmaceuticals 1QFY2015 performance highlights and results update

August 1, 2014, Friday, 10:55 GMT | 06:55 EST | 15:25 IST | 17:55 SGT
Contributed by Angel Broking


Alembic Pharmaceuticals has announced its 1QFY2015 results, which are mostly in line with our expectations. For the quarter, the company posted sales of Rs.492cr (V/s an expected Rs.506cr), ie a yoy growth of 15.6%. Domestic sales stood at Rs.278cr, posting a yoy growth of 15.4%, while exports grew by 16.1% yoy. On the operating front, the OPM came in at 19.5% (V/s an expected18.5%) V/s 16.7% in 1QFY2014, ie an expansion of 280bp yoy. The expansion in the OPM was on the back of an expansion in GPM, which came in at 64.0% V/s 59.5% in 1QFY2014. Thus, the PAT came in at Rs.64.6cr (V/s an expected Rs.65.4cr), registering a yoy growth of 38.6%. We remain Neutral on the stock.

Results mostly inline with expectations: For the quarter, the company posted sales of Rs.492cr (V/s an expected Rs.506cr), ie a yoy growth of 15.6%. Domestic sales stood at Rs.278cr, posting a yoy growth of 15.4%, while exports grew by 16.1% yoy. On the operating front, the OPM came in at 19.5% (V/s an expected18.5%) V/s 16.7% in 1QFY2014, ie an expansion of 280bp yoy. The expansion in the OPM was on the back of an expansion in GPM, which came in at 64.0% V/s 59.5% in 1QFY2014. Thus, the PAT came in at Rs.64.6cr (V/s an expected Rs.65.4cr), registering a yoy growth of 38.6%.

Outlook and valuation: Alembic Pharmaceuticals’ growth and profitability profile has improved post the restructuring carried out by the Management. Over FY2014-16, we expect the company to post a CAGR of 16.1% and 18.3% in sales and net profit, respectively. We recommend a Neutral rating on the stock.

Stock Market Forum