Anand Rathi: Suven Pharma Posts Strong Q1 Amid Headwinds; Profitability To Rise

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.Strong, 39%, growth in its contract development and manufacturing operations (CDMO) pharma to Rs 1.3 billion led to Suven Pharmaceuticals Ltd.’s Q1 FY21 sales rising 20.7% YoY to Rs 2.4 billion.The unfavourable product mix, however, pulled the gross margin down 875 basis points to 70.3%.But operating leverage helped curtail the Ebitda margin decline (down 486 basis points YoY) to 47%.On the lower share of profit from the Rising Pharma joint venture and the higher tax rate, profit after tax was flat at Rs 915 million.Suven Pharma is on track in launching molecules (two in specialty chemicals over FY21-22 and one in pharma) in CDMO and in filing formulation products (six pending approval, another five being developed).Traction in its CDMO business and steady formulation launches would drive 17.3%/19.2% growth in sales/ earnings over FY20-23.Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Anand Rathi: Suven Pharma Posts Strong Q1 Amid Headwinds; Profitability To Rise

Anand Rathi: Suven Pharma Posts Strong Q1 Amid Headwinds; Profitability To Rise

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