Cadila Healthcare Ltd's Q1FY19 consolidated net profit rises 232.97% yoy to Rs460.50cr : Misses Estimates

The company’s consolidated revenue stood at Rs2,893.70cr, up 32.42% yoy but down 10.97% qoq.

Aug 13, 2018 09:08 IST India Infoline Research Team

Cadila Healthcare Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 2,893.70 32.4
EBITDA 645 133.1
EBITDA Margin (%) 22.3 963
Net Profit (adjusted) 460.50 233.0
***EBITDA margin change is bps
Cadila Healthcare’s revenue in Q1FY19 grew by 32.4% yoy to Rs2,893.7cr. EBITDA grew by 133.1% yoy to Rs645cr in Q1FY19 vs. Rs276.7cr in Q1FY18. EBITDA margins in Q1FY19 grew by 963bps yoy to 22.3% vs. 12.7% in Q1FY18. PAT grew by 233% yoy to Rs460.5cr in Q1FY19 vs. Rs138.3cr in Q1FY18.
  • Overall results are below our expectations, with revenue and EBITDA below 3%/6% below expectations respectively while PAT 9% above expectations due to higher other income.
  • The India formulations business grew 40% yoy to Rs893cr on a low base.
  • The US business grew 27% yoy to Rs1, 230cr.
  • Revenue in the emerging markets of Asia, Africa and Latin America grew by 13% yoy to Rs196cr.
  • Gross margin during Q1FY19 stood at 65.9% vs. 66.7% in Q4FY18 and 62.3% in Q1FY18.
  • Cadila’s EBITDA margins have improved yoy, but note that the company has seen better operating leverage in Q1FY19 vs. Q1FY18 when GST had led to de-stocking.
  • In Q1FY19, PAT grew due to 382% yoy growth in the other income. Excluding this, PAT could have been lower by 15-20%.
  • The company has filed 3 ANDAs, received 13 approvals and lunched 9 new products in the US market in Q1FY19.
  • The company launched 19 new products (including line extensions) in India.
Technical View:

Cadila Healthcare Ltd is currently trading at Rs. 355.10, down by 21.4 points or 5.68% from its previous closing of Rs. 376.50 on the BSE.
The scrip opened at Rs. 376 and has touched a high and low of Rs. 382.25 and Rs. 353.05 respectively. So far 53,39,185 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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