Bajaj Healthcare skid after Q1 PAT drops 37% YoY to Rs 12 cr

16 Aug 2022 , 09:36 AM

Revenue from operation declined 7.3% to Rs 172.07 crore in the quarter ended 30 June 2022 as against Rs 185.69 crore posted in the corresponding quarter last year. The company said that decline in revenue was mainly due to contraction of Covid-19 led opportunities. The companys profit before tax stood at Rs 16.16 crore in Q1 FY23, down 40.7% from Rs 27.25 crore reported in the same period previous year. EBITDA dropped 22.85% to Rs 25.84 crore in the first quarter from Rs 33.5 crore posted in Q1 FY22. EBITDA margin reduced to 15.02% as compared to 18.04% reported in Q1 FY22 and 14.35% recorded in Q4 FY22. The degrowth in EBITDA margins was mainly on account of weakening of Indian Rupee, thereby leading to an increase in imported raw material cost. The EBITDA margins strengthened ona sequential quarter basis by 67bps, the company stated. Commenting on the Q1 FY23 results, Sajankumar Bajaj, Chairman, said, ?We are pleased to inform all our stakeholders that the company has reported an overall stable financial performance in Q1 FY23 despite witnessing inflationary headwinds for the major part of the quarter. Despite declining contribution from Covid related products, The company was able to retain its revenue achieved in Q1 FY22 on account of covid related demand and post an improvement in quarterly EBITDA margins on a sequential basis. Our focus at BHL is on our business strategy of ?Growth beyond the Pandemic?, which aims at building sustainable revenues on the back of innovative products and value additions to existing pharma solutions available our customers. We continue to build our Non-Covid related portfolio, by introducing new products and expanding the market of products introduced in previous year. We expect the sales of the products launched in FY22, to pick up momentum by the first half of FY23. We have successfully launched Magnesium L-Threonate in the Nutraceutical segment & commenced production of ?Nimesulide API? in the last year. The increased capacities of Citicoline Sodium combined with these newly launched products would contribute significantly to the topline of the business in FY23. We also plan to add 3 to 4 additional APis through reverse engineering; to our current repertoire, which will be further supported by our strong in-house R&D team. The companys main growth drivers in FY23 would be the scaling up of revenues from new products and business segments, usage of the capacities of acquired assets, API manufacturing competence, and increasing overseas markets. We are confident that our execution capabilities and business objectives are well matched, allowing us to achieve our estimates in terms of revenue and margins.? As per the companys guidance, the management has provided guidance to post growth of 18%-20% for FY23, mainly driven by growth in the formulation business, addition of new capacities through acquired assets, and with the introduction of reverse engineering APIs launched in the last financial year. The management plans to increase its exports to Rs 200 crore for FY23. The management expects that the EBITDA margins would grow from the existing 17.43% in FY22 to 18%-20% in FY23. The dividend pay-out is expected to show a further positive growth rate, in line with healthy cash flows which company expects to generate in future. Meanwhile, the companys board has recommended a final dividend of Rs 1.50 per equity shares on face value of Rs 5 each for the financial year ended 31 March 2022. Bajaj Healthcare a leading manufacturer of APIs, intermediates and formulations. It has a strong presence globally in countries like Europe, USA, Australia, Africa, Middle East and South America. Powered by Capital Market – Live News