Cadila Healthcare’s 2QFY16 net profit of R390.9 crore (41% y-o-y) was primarily due to better product mix and forex gain.
Adjusting for one-off items including the R20 crore from the sale and transfer of ANDAs, additional tax expense due to a change in invoicing policy to subsidiaries, and forex impact, PAT of R386 crore (39% y-o-y) was c6% higher than HSBC.
Net revenues (excluding $3 million income on sale or transfer ANDAs) at R24.3 billion (15% y-o-y) were marginally lower than HSBCe on lower India and US sales, partially offset by higher JV revenues and emerging market sales.
Ebitda margins at 23.6% were 190-bps higher than HSBCe on better gross margins and lower other expenses. US sales at Rs 1,000 crore (25.2% y-o-y, 1.9% q-o-q) were supported by traction in products including HCQS (hydroxychloroquinesulfate). HCQS has already experienced higher competition and should see no further major price erosion.
The resolution of FDA issues at the Moraiya facility is pending, with Cadila working on site-transfer for key pipeline products, according to the company.
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