Cipla Q4 Review - Weakness In South Africa, U.S. Play Spoilsport To Cost Savings Benefits: Prabhudas Lilladher
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Prabhudas Lilladher Report
We revise our earnings estimates for FY22E by 2% while increasing by 3% in FY23E due to better India formulations prospects from Covid-19 opportunity, partially offset by lower growth in South Africa and other emerging markets.
The company surpassed its earlier cost saving of Rs 4-5 billion for FY21E and we believe part of it would continue in FY22E/23E too.
Its recent performance in Q4 was below our estimates due to:
Unfavorable product mix with lack of Covid-19 portfolio growth in India.
Anti-infective portfolio continued to setback lower volume in India.
Stagnant U.S. sales at around $140 million over four quarters, despite launching key products.
Lack of growth in South Africa with adverse forex and lower tender business.
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