In the July-September quarter (Q2FY21), the company’s revenue from operations grew by 22.7 per cent year-on-year (YoY) mainly on an account of new launches and increase in market share of existing products across the three verticals.
Ebitda (earnings before interest, taxes, depreciation, and amortization) for the quarter grew 78.6 per cent YoY, with a +935 basis points (bps) margin expansion YoY on changing product mix and improved operational efficiencies arising out of higher capacity utilization.
The management expects sales to Europe and LATAM over FY20-23 to expand 800bps and 400bps respectively to 28 per cent and 12 per cent. It plans to launch newer products and enter newer markets
within these regions.
Near-term growth is likely to be driven by the foray into MUPS (multi-unit pellet system) products, entry into newer markets
and capacity addition in PFIs (pharmaceutical formulations intermediates) . Beyond which, its US pipeline and oncology products would drive growth, analyst at Anand Rathi Share and Stock Brokers said in result update. The brokerage firm has ‘buy’ rating on the stock with target price of Rs 455 per share.
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