Zydus Wellness - Q1FY14 Results - Nirmal Bang Institutional

- Result was broadly in -line with street estimates.

- The net sales grew by 13.8% YoY to Rs 107.4 crs and by 4.3% QoQ.

- EBITDA for the quarter grew by 11.2% YoY to Rs 17.2 crs and declined by 43.1% QoQ. EBITDA margin was down by 40bps YoY to 16% in Q1FY14 and by 1330bps QoQ. The margin on account of jump in employee expenses and other expenses as a % of sales. The Gross margin declined by 60bps YoY to 70.5% in Q1FY14 and up by 320bps QoQ.

- APAT for the quarter was Rs. 22.7 crs in Q1FY14, jump by 68.4% YoY and down by 39.3% QoQ. APAT margin was 21.2% in Q1FY14 as against 14.3% in Q1FY13 and 36.3% in Q4FY13. The write - back in tax, jump in Other income supported the profitability of the company.

- Stock is currently trading at 23.4x on trailing basis.

- We will come up with the view after the scheduled concall with the management.

Source : Equity Bulls

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