Views on Indoco Remedies 4QFY2015 Results - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on Indoco Remedies 4QFY2015 Results:

"For 4QFY2015, Indoco Remedies posted sales of INR 212cr V/s INR 219cr expected and INR 186cr in 4QFY2014, a yoy growth of 13.8%, driven by domestic sales. Domestic market posted sales of INR 129cr, registering a growth of 17.1% yoy, driven by domestic formulation (INR 123cr) a yoy growth of 16.7% yoy, while API (INR 61.4cr) a yoy growth of 25.8%. Exports (INR 82cr), on the other hand grew by 9.0% yoy, with formulation exports (INR 75cr), a yoy growth of 9.9%, while export API, posted a flat growth to end the period at INR 6.84cr.

On the operating front, the EBITDA margins came in at 18.4% V/s 17.3% expected and 18.9% in 4QFY2014, a dip of 46bps yoy. This has came inspite of a 78.2% rise in R&D expenditure, on back of the 1.0% rise in the employee expenses. R&D expenses, during the quarter were 3.5% V/s 2.2% in 4QFY2014. Also, during the quarter the deprecation expenses raised by 59.2%, which aided the Adj. PAT, to come in at INR 19cr V/s INR 20cr in 4QFY2014, a growth of 1.1% yoy. We maintain our NEUTRAL rating on the stock."

Shares of INDOCO REMEDIES LTD. was last trading in BSE at Rs.364.1 as compared to the previous close of Rs. 367.45. The total number of shares traded during the day was 10285 in over 399 trades.

The stock hit an intraday high of Rs. 377 and intraday low of 362. The net turnover during the day was Rs. 3774832.

Source : Equity Bulls

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