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Cadila Healthcare Q4 Review - Margin Supported By Lower Research And Development: ICICI Securities

Cadila Healthcare Q4 Review - Margin Supported By Lower Research And Development: ICICI Securities

<div class="paragraphs"><p>A technician testing solution at Cadila Healthcare Ltd.'s R&amp;D facility. (Source: Company website).</p></div>
A technician testing solution at Cadila Healthcare Ltd.'s R&D facility. (Source: Company website).

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Cadila Healthcare Ltd. reported Q4 FY21 performance largely in line with our estimates.

However, U.S. sales were weak while Ebitda margin was supported by reduced expenditure towards research and development.

Total revenue grew 3.2% to Rs 38.5 billion (our estimate: Rs 37.8 billion) supported by India formulations and consumer businesses.

Ebitda margin (ex-forex) improved 170 basis points to 22.2% (our estimate: 22.0%) driven by lower R&D spend (down 19.0% YoY).

The company has strengthened the balance sheet by substantial net debt reduction to ~Rs 35 billion, aided by internal accruals and equity raise of Rs 10 billion in Zydus Wellness Ltd. (subsidiary).

Click on the attachment to read the full report:

ICICI Securities Cadila Healthcare Q4FY21 Result Update.pdf

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