Healthcare - Q1FY21 Result Preview - ICICI Securities

The I-direct healthcare universe is expected to register mere ~2% YoY growth to Rs. 31920 crore on the back of flat growth in domestic and US formulations. While domestic growth is expected to be impacted by Covid-related challenges (lockdowns at most plant locations) and channel volatility, US growth is expected to be subdued due to higher base and Covid impact despite currency tailwinds. Domestic formulations (select pack) are expected to remain flat at Rs. 6773 crore mainly due to Covid-related stocking in the previous quarter, lower manufacturing activity and channel/logistical disturbances. US (select pack) portfolio is expected to remain flattish (up 0.9% YoY) at Rs. 10646 crore due to 1) base effect in Sun Pharma, 2) Covid impact and 3) higher stocking in Q4, related to Covid driven one-time opportunities. US revenues could have been worse if not for the significant strengthening of US$ vs rupee (9.1%). Europe is expected to grow ~12% YoY. Growth in other emerging markets and Europe is likely to be driven by new launches. API segment is expected to post strong 15% YoY growth on the back of low base effect and one-time opportunities due to Covid.

Net profit to de-grow ~20%

Net profit is expected to decline 19.5% YoY to Rs. 3336 crore, mainly due to a subdued operational performance and lower other income (higher base) along with higher depreciation.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Pharma_Q1FY21.pdf

Source : Equity Bulls

Keywords