Ipca Labs Q2 Results Review - Negatives Priced In: Dolat Capital
post sharp correction in stock we believe worst case is captured in price with margin bottoming out.
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Dolat Capital Report
Ipca Laboratories Ltd.’s revenues were at Rs 16 billion (inline), grew 3.7% YoY/flattish QoQ.
Ebitda after adjusting forex stood at Rs 2.7 billion (below estimate), declined 21.3% YoY and Ebitda margin at 17.0% (below estimate) contracted 539 bps YoY on account of higher energy cost, higher marketing expenses and recruitment of additional field force.
Profit after tax after adjusting forex stood at Rs 1.5 billion (below estimate), declined by 35% YoY mainly on back of lower operating performance.
Domestic formulation revenue grew 10% YoY in Q2 FY23 mainly due to decline of 19% YoY in anti-malarial sales. Growth was 13% YoY ex antimalarial sales led by traction across therapies. Pain management grew 21% YoY.
Ipca's export formulations grew 15% YoY in Q2 FY23 led by branded generic segment which grew by 33% YoY.
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