Shilpa Medicare Q1 Review - Weak Quarter; Import Alert Remains An Overhang: ICICI Securities
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ICICI Securities Report
Shilpa Medicare Ltd. reported Q1 FY22 results below our estimates due to decline in active pharma ingredient sales and significant jump in operating costs, partly on account of U.S. food and drug administration related remedial measures.
Revenue grew 6.5% YoY to Rs 2.4 billion (our estimate: Rs 2.5 billion), Ebitda margin dropped 1,610 basis points YoY to 13.4% (our estimate: 20.5%) and adjusted profit after tax was down 96.1% to Rs 16 million.
Formulations revenue was up 50.8% YoY to Rs 936 million with incremental sales from Europe, however, APIs declined.
Shilpa Medicare is implementing the remedial measures post import alert at Jadcherla formulations unit and has incurred additional expenses of Rs 182 million on the same.
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