Cadila Healthcare Ltd's Q4FY18 consolidated net profit rises 44.61% yoy to Rs595.50cr : Beats Estimates

The company’s consolidated revenue stood at Rs3,250.20cr, up 31.77% yoy and 0.08% qoq.

May 25, 2018 11:05 IST India Infoline Research Team

Cadila Healthcare Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 3,250.20 31.8
EBITDA 870.40 87.4
EBITDA Margin (%) 26.8 795
Net Profit (adjusted) 595.50 44.6
***EBITDA margin change is bps


Reco. Price


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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.
Concall highlights 
  • 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.

Technical View:

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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