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

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.

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:

DISCLAIMER

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.