Sanofi India Q2 Review - High Costs Suppress Margins: ICICI Securities

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..ICICI Securities Report.Sanofi India Ltd.’s Q2 CY22 performance was below our estimates on the profitability front. Revenues declined 11.4% YoY to Rs 7.0 billion (our estimate: Rs 7.1 billion) due to divestment of the nutraceutical business and brands. Ebitda margin contracted 830 basis points YoY and 450 bps QoQ to 23% (our estimate: 26.5%) due to negative operating leverage and fixed costs amidst lower revenues. In the past few years, the company’s growth and profitability were fuelled by power brands. We remain positive on Sanofi India given its high exposure in the fast-growing chronic therapy in domestic formulations, strong balance sheet with deep cash reserves, and strong brand equity built over the years. While we expect near-term performance to be modest, the recent correction in stock price (~10% in past six months) keeps valuations reasonable..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.

Sanofi India Q2 Review - High Costs Suppress Margins: ICICI Securities

Sanofi India Q2 Review - High Costs Suppress Margins: ICICI Securities

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