Cadila Healthcare: Mix-Bag Numbers In Q4

One of the renowned names in the Indian pharmaceutical sector, Cadila Healthcare came out with its results today. The performance has been a mixed bag. The company has posted a topline of Rs 1565.76 crore for Q4FY13, witnessing a growth of 16.47% on a YoY basis, which is certainly better than the street's expectation.

On the EBITDA front, it witnessed a flattish growth of mere 1.27% on a YoY basis to stand at Rs 286.39 crore. The EBITDA margins witnessed a decline of 275 basis points on a YoY basis to stand at 18.29%. The OPM stood at 15.3%, which is a dip of 175 basis points.

During the quarter, the company has seen Rs 583 crore tax write-back. The net profit witnessed a growth of 53.59% on a YoY basis to come in at Rs 262 crore for Q4FY13, but this slips down to 19.48% if the tax write-back is adjusted.
Cadila's domestic formulation business has witnessed a growth of 15% on a YoY basis to post a revenue of Rs 7411 crore, while the exports rose by 19.7% for the same period, amounting to revenues of Rs 7429 crore.

The company has strengthened its position with regard to its pipeline. The group filed 33 ANDAs during the year 2012-13, with its cumulative filings now at 173. It received approvals for 15 ANDAs during the year, taking the total to 76. It also filed 25 additional dossiers for new products in the European markets, taking the total new product dossier filings to 161. The group filed 18 dossiers in Brazil, and these now stand at 100. In Mexico, it filed 6 new product dossiers, taking the total to 20.

The company has declared an interim dividend of Rs 7.50 per share, to take the dividend yield to 0.96%. We feel that the tax write-back is a one-off item. With the kind of pipeline the company currently has, it is likely to perform better in this fiscal. One can look to adding this stock to one's portfolio.