Shilpa Medicare - Weak Q4; Import Alert Remains An Overhang: ICICI Securities

Shilpa Medicare Ltd.’s R&D facility. (Source: Company website).

Shilpa Medicare - Weak Q4; Import Alert Remains An Overhang: ICICI Securities

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ICICI Securities Report

Shilpa Medicare Ltd. reported Q4 FY21 results below our estimates due to significant jump in operating costs, partly on account of U.S. food and drug administration related remedial measures.

Revenue declined 5.4% YoY to Rs 2.1 billion (our estimate: Rs 2.1 billion), Ebitda margin dropped 810 basis points YoY to 12.6% (our estimate: 18.8%) and adjusted profit after tax was down 77.4% to Rs 78 million.

Formulations revenue was up 41.7% QoQ to Rs 486 million with incremental sales from Europe.

The company is implementing the remedial measures post import alert at Jadcherla formulations unit and has incurred additional expenses of Rs 52.9 million on the same in Q4 FY21.

Click on the attachment to read the full report:

ICICI Securities Shilpa Medicare Q4FY21 Results Update.pdf


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