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FDC Q2 Review - Strong Domestic Recovery: Centrum Broking

FDC Q2 Review - Strong Domestic Recovery: Centrum Broking

Purple pills sit in a container. (Photographer: Daniel Acker/Bloomberg)
Purple pills sit in a container. (Photographer: Daniel Acker/Bloomberg)

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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:

Centrum FDC - Q2FY22 Result Update.pdf

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