Views on Abbott India 5QFY2014 results - Angel Broking

Views of Ms. Tejashwini Kumari (Equity Research Associates-Mid Caps, Angel Broking) on Abbott India 5QFY2014 results:

"Abbott India (AIL) reported marginally better than expected number for the quarter ending March, 2104. The company reported a sales of Rs. 494cr in this quarter against Rs. 420cr in same quarter last year, growth of 17.6%, which was marginally higher than our estimate of Rs. 463cr. EBITDA margin came in at 10.2% for the quarter, contraction of 75bp vis-à-vis same quarter ending March, 2103, however it contracted by 300bp sequentially. It came in 131bp lower than our estimate because of higher than expected employee cost and other expenses. Tax expense for the quarter was Rs. 18cr (31.7% of PBT). Other income for the quarter stood at Rs. 9cr. Consequently, the net profit stood at Rs. 38cr against Rs. 32cr profit in quarter ending March, 2103, marginally ahead of our expectation of Rs. 36cr.

For the year, the company reported 15 months (Jan, 2013-Mar, 2014) numbers as it has changed its accounting year from Calendar year (CY) to Financial year (FY). With clear strategy of pushing its best brands and focus on nutrition and OTC drug portfolios and continuous new launches, we remain positive on the growth outlook of AIL. We continue to maintain Accumulate on the stock."

Shares of ABBOTT INDIA LTD. was last trading in BSE at Rs.1750 as compared to the previous close of Rs. 1746.95. The total number of shares traded during the day was 966 in over 143 trades.

The stock hit an intraday high of Rs. 1765 and intraday low of 1735.55. The net turnover during the day was Rs. 1689555.

Source : Equity Bulls

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