FDC Q2 Review - Strong Domestic Recovery: Centrum Broking
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.
Centrum Broking Report
FDC Ltd.’s Q2 FY22 numbers were below our estimates, though strong recovery in domestic acute market benefited the company.
Domestic revenue grew 25% YoY, driven by strong recovery in Zifi, Electral and Enerzal.
Export formulations declined 54% YoY and 17% QoQ to Rs 360 million (9% of sales).
Weakness in exports was driven by U.S. sales being impacted by competition and lower demand.
FDC's gross margins were impacted by lower profit share from U.S. Ebitda margin stood at 18% on account of higher other expenses sequentially due to improving domestic on-ground activities.
We expect the domestic recovery to remain strong on a weak base while we have built in the impact of U.S. weakness by reducing FY22/FY23E earnings per share by ~8%.
Click on the attachment to read the full report:
This 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 author entity 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.