IPCA Laboratories Posts Strong Q3FY14 Results, Net Profit Up By 58%

The results of the pharmaceutical companies had so far remained on the impressive side. The saga continued with IPCA Laboratories coming out with astounding results for the quarter ended December 2013 much ahead of the street expectations. The topline of the company has grown by 17.73% on YoY basis to stand at Rs 815.15 crore for Q3FY14 as against Rs 692.41 crore reported during the same quarter last fiscal.

If we look at the revenue break up for the quarter we find that the formulations business (77% of revenue) witnessed growth of 18% on YoY basis to stand at Rs 628.13 crore. The domestic formulation business grew by 16% and the export formulation business grew by 20% on YoY basis to stand at Rs 246.33 crore and Rs 381.80 crore respectively. On the other hand APIs (23% of revenue) posted a growth of 15% on YoY basis to stand at Rs 187 crore for Q3FY14.

Coming to the operating profit part, the company posted EBITDA of Rs 217.34 crore up by 37.23% on YoY basis for the recently concluded quarter. EBITDA margins for the quarter expanded by 379 basis points on YoY basis to stand at 26.66%. The rise in the EBITDA levels can be attributed to better cost rationalisation by the company. The raw material prices as a percentage of sales declined by 711 basis points on YoY basis to stand at 31.58% for Q3FY14.

On the bottomline front, the company posted net profit of Rs 139.12 crore for Q3FY14 as against Rs 87.89 reported during the same quarter last fiscal up by 58.29%.

The stock closed the day at Rs 798 (+3.89%) on the bourses. Further up move in the coming few trading session cannot be ruled out.