IPCA Q1 FY22 First cut - Big beat on sales, margin driven by COVID drugs - YES Securities

- IPCA reported a bumper quarter with the extent of beat a surprise - company even managed to grow on the large HCQS fueled base of last year; QoQ growth of 40%

- Domestic growth +41% qoq and 25% yoy large part of which would be driven by Azithromycin due to COVID-related needs - our sense is COVID may have contributed Rs600-700mn in Q1

- HCQS sales in exports weighed on branded and generics business; both down 19% and 10% yoy respectively

- Export API up 5% on a large base of last year - again could be related to Azithromycin & antibiotic exports.

- Strong revenue performance led to margin beat ~27% vs estimated 24%. Key costs rebound from lockdown-induced base of last year as expected. Gross margin declines qoq and yoy probably due to lower margin sales of COVID drugs

Shares of Ipca Laboratories Ltd. was last trading in BSE at Rs. 2130.1 as compared to the previous close of Rs. 2087.55. The total number of shares traded during the day was 23314 in over 3938 trades.

The stock hit an intraday high of Rs. 2242.5 and intraday low of 2052.35. The net turnover during the day was Rs. 49967421.

Source : Equity Bulls

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