Cadila Healthcare’s sales in Q4FY18 grew by 31.8% yoy to Rs3,250.2cr. EBITDA grew by 87.4%yoy to Rs870.4cr in Q4FY18, EBITDA margins were at 26.8% in Q4FY18 vs. 26% in Q3FY18 and 18.8% in Q4FY17. Adj PAT grew by 44.6% yoy to Rs595.5cr in Q4FY18.
Cadila Healthcare’s numbers on all front (Sales/EBITDA/PAT) are ahead of the street estimates.
Gross margin at 66.7% in Q4FY18 vs. 65.6% in Q3FY18 and 62.6% in Q4FY7.
Other income at Rs28.7cr in Q4FY18 vs. Rs41cr in Q3FY18 and Rs73.1cr in Q4FY17.
Revenue growth in Q4FY18 has been better due to the strong commercialization momentum and 1.5-2% qoq price erosion.
Company is expecting strong US revenue growth due to the ~50 product launches in the US over FY19E. This includes some limited competition product launches as well.
Company has said that margins would be healthy.
Cadila is positive on vaccines business, as it is a large opportunity ($500mn+ in India and EM in the next five years) and multiple vaccines have already been developed and has 9 approvals.
In Lialda, Cadila has 50% market share but some price erosion happened.
The gToprol launch will happen in Q2FY19E and the company believes that there is enough opportunity to gain market share, as it is a large volume product. gToprol is high technology product, currently company is in inventory built up stage.
Company has total 144 pending ANDAs and expect strong launch momentum due to dedicated teams and de-bottlenecked facilities.
Cadila would take one year to start building strong cash flows.
In gAsacol, company is not expecting any competition.
The company has said to undertake Rs1,000cr capex towards manufacturing and compliance and R&D expenses would remain 7-8% of the sales in FY19E.
Cadila Healthcare Ltd is currently trading at Rs. 382.15, up by 24.6 points or 6.88% from its previous closing of Rs. 357.55 on the BSE.
The scrip opened at Rs. 363 and has touched a high and low of Rs. 397 and Rs. 352.25 respectively. So far 45,16,070 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.
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