Cadila Healthcare - Q4 FY12 Result Analysis - Microsec Research

Cadila Healthcare Ltd, a leading pharmaceutical company presents in formulation, active pharmaceutical ingredients, consumer wellness and animal health segments. The company launched 90 new products including over 40 line extensions of which 29 were launched first time in India.

During Q4 FY12, the company posted 15% revenue growth on yoy basis driven by 38% formulation business growth and 11% growth in consumer wellness business. Despite raw material costs and other expenditure shoot up 25% and 26% on yoy basis due to higher oil prices, advertising costs and foreign exchange loss of INR84 Mn, the EBITDA margin increased by 134 basis points. The revenue spend on R&D increased by 45% to INR3,638 Mn. On account of the new manufacturing facility, the depreciation cost was up by 23% on quarterly yoy basis.

According to management, the company is going to achieve $3 Bn revenue by 2015 and to meet this target, Cadila focuses on 15 markets and 13 therapies and target to file around 30 ANDAs. In the next 6 months, the company is targeting 10 to 15 products approvals. Furthermore, Cadila is likely to invest INR 650 Crore for expanding the formulation manufacturing capacity. We maintain our "Hold" rating for the stock.

The Board of Directors have recommended final dividend of INR 7.50 per share on the face value of INR 5 per share.

Source : Equity Bulls

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