Q4FY21 Result Update - Alembic Pharma - ICICI Direct

Q4 revenues grew 6.1% YoY to Rs. 1280 crore with strong growth in RoW formulations and API segment being partly offset by 17.7% YoY decline in US sales to Rs. 475 crore. Domestic formulations grew 4.7% YoY to Rs. 358 crore. RoW sales grew a robust 76.5% YoY to Rs. 233 crore whereas API segment grew 38.1% YoY to Rs. 214 crore. EBITDA margins declined 45 bps YoY to 26.7% with lower gross margins being mostly offset by lower employee cost. EBITDA grew 4.3% YoY to Rs. 342 crore. Adjusted PAT grew 6.5% YoY to Rs. 251 crore.

Valuation & Outlook

Q4 topline performance was in line with expectation (albeit skewed), impacted by decline in US sales. Profitability was better-than-expected due to lower-than-expected staff costs, other expenditure (ex-R&D) and a lower tax rate. Owing to pricing pressure across the Sartan portfolio, the management expects US quarterly sales to remain subdued in the near term. On the domestic front, the management expects a steady run rate, going forward. Additionally, in the API segment with Chinese players returning to the market, the management expects some sales moderation but expects steady growth. Apart from this, the management is aggressively spending on R&D and manufacturing for US oncology, injectables, derma segments which provides growth optimism for medium to long-term but may impact near term margins. We maintain HOLD rating and arrive at a target price of Rs. 1055 (unchanged) based on 20x FY23E EPS of Rs. 52.7.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_AlembicPharma_Q4FY21.pdf

Shares of ALEMBIC PHARMACEUTICALS LTD. was last trading in BSE at Rs.940.8 as compared to the previous close of Rs. 956. The total number of shares traded during the day was 35337 in over 2608 trades.

The stock hit an intraday high of Rs. 969.95 and intraday low of 935. The net turnover during the day was Rs. 33444870.

Source : Equity Bulls

Keywords