Published on 11/08/2017 5:39:22 PM | Source: Angel Broking Pvt Ltd
We maintain our SELL rating on Indoco Remedies Ltd 1QFY2018 Results - Angel Broking
Below is the View On Indoco Remedies Ltd 1QFY2018 Results by Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking):
“Indoco Remedies like other pharmaceuticals companies posted bad set of numbers. Sales came in at INR 204cr V/s INR214cr expected and V/s INR253cr in 1QFY2017, a YoY de-growth of 19.2%. The company witnessed a disruptive 1QFY2018, with domestic as well International sales getting affected adversely due to GST implementation in India and voluntary stoppage of ophthalmic product supplies to US respectively. The formulation sales (INR185.7cr; 90.9% of sales in 1QFY2018), posted a dip of 20.7% YoY. The domestic formulation sales (INR99.7cr), a dip of 29.7% YoY. The International formulation sales (INR86.0cr), a YoY dip of 6.9%. The API sales (INR14.9cr), posted a YoY dip of 15.1%.
On operating front, the EBITDA margins came in at (1.7%) V/s (0.9%) expected V/s 14.7% in 1QFY2017, mainly on back of lower than expected sales during the quarter. Gross margins came in at 65.2% V/s 64.8% in 1QFY2017; while R&D expenses were 6.6% of sales in 1QFY2018 V/s 4.7% of sales in 1QFY2017. Thus, the PAT came in at INR (21.7)cr V/s INR (13.8)cr expected V/s INR19.7cr in 1QFY2017. We maintain our SELL rating on the stock, with a price target of INR153.”
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