Indoco Remedies Q2 Results Review - Margin Expansion Drives Earnings Growth: Systematix

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.Indoco Remedies Ltd.’s Q2 FY23 revenue was below our estimates on account of a weak performance (2% decline YoY) in the domestic formulation front. However, net earnings were in line led by a 200 basis points QoQ improvement in gross margins. Company guidance on export formulations remains upbeat as they expect strong revenue growth and margin expansion in the segment. Certain limited competition launches should help export formulation performance. They continue to build a pipeline around suspensions (injectable and ophthalmic) and extended release oral solids. Indoco’s India business was impacted by lower anti-infective and respiratory sales due to a high base in Q2 FY22 (Covid sales). New product launches contributed 2.5% of domestic branded formulation sales during the quarter. Over the full year FY23, they still expect to grow mid to high single digit in their domestic formulation business over FY22, which in our view is challenging..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indoco Remedies Q2 Results Review - Margin Expansion Drives Earnings Growth: Systematix

The company expects Ebitda margin to reach 25% in the next three years.

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