Cadila Q3FY16 results in line with expectations: stock up 5 per cent

Gujarat based drug company Cadila Healthcare posted its Q3FY16 numbers on Friday. Company’s profits increased by 38 per cent Y-O-Y (year on year) to Rs 389.6 crore, whereas sales for the quarter saw an increase of 10.91 per cent led by US markets.

Consolidated revenue from operation for quarter ending December 2015 stand at Rs 2428.4 crore in comparison to Rs 2189.5 crore attained in the corresponding quarter of the previous fiscal, representing a growth of 10.91 per cent led by a robust growth in US markets.

Operationally the performance was better than expectations as EBITDA grew by 29.40 per cent on a Y-O-Y basis to Rs 578.7 crore compared to Rs 447.21 crore achieved in the same period of the last fiscal. Decrease in purchase of traded goods as a percentage to sales revenue was by 200 basis points in Q3FY16. Employee cost for the December quarter remained flat with a negative bias. Margins for the third quarter expanded by 340 basis points to 23.83 per cent. Profits after tax (PAT) in Q3 increased by 38.20 per cent to Rs 389.6 crore as against Rs 281.91 crore in the same period of the last fiscal.

Other income for the quarter jumped 154.75 per cent to Rs 25.5 crore, whereas finance cost came down by 22.41 per cent, therefore helping the company in posting good profits.

During the quarter, the company's business in the US market posted sales of Rs 1,072 crore registering a growth of 20 per cent over the same period of previous year.

Cadila Healthcare filed 20 Abbreviated New Drug Applications (ANDAs) with the US FDA during the quarter.  The company in total launched 12 new products, including line extensions, in the domestic market. In Brazil, the company received the regulatory approval for two products during the quarter.

Reacting to the positive set of Q3 numbers scrip of Cadila Healthcare surged in late trade by more than 5 per cent intra-day to hit a high of Rs 329.60 before closing the day at Rs 327.20 up by 4.77 per cent.