Cadila Healthcare - Q2 FY13 Results - Microsec

Cadila Healthcare Ltd has posted its Q2 FY13 results on 7th Nov 2012. The top line jumped by 24.01% mainly driven by 76%, 20%,28%, 20% growth in Emerging markets, US business, domestic formulation business and animal healthcare business respectively. The growth in the domestic formulation business is mainly due to the new product launches and acquisition of Biochem. On account of the higher tax rate of 32% and forex loss of Rs.491 Mn, the bottom line plunged by 7.34%.

During the quarter, the company has filed 10 ANDAs, out of which 5 are injectables. Cadila is targeting to launch 3 injectables products in the coming quarter. In addition to that, Cadila has 5 transdermals in the pipeline which are likely to contribute in the revenue from FY15 onwards. According to the management, the company has taken 2 initiatives such as sales force effectiveness and driving down cost to improve top line as well as bottom line. In the domestic market, Cadila is facing challenges in terms of sales volume and product launch.

We recommend "Hold" to the stock.

Source : Equity Bulls

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