Deleveraging should certainly help bump up the consolidated results. That’s one
WRT generics - I personally think that the worst may be over. The price erosion in US mkts is down from 8-10 pc / yr to 4-5 pc / yr. Real kicker / turnaround shall happen in generics only when the Roorkee plant is able to comply with US FDA
However, I am personally happy with their de-leveraging thrust. This step alone should help save 120-130 cr kind of interest costs/yr. Hence took up a tracking position
They are currently doing an annualised PAT of say 250 cr/ yr ( going by Q2, Q3 numbers ). This 100 odd cr addition shall take it to say 350 cr. As and when generics stop making losses, radio pharmacies start making some money … PAT may well cross 400 cr levels
Disc: biased, tracking, not SEBI registered
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