I attended the concall. While the company is guiding for a strong H2, the overall guidance has been revised down to high single digit growth from the earlier mid teen guidance. This implies around 20% growth for H2 to meet the high single digit growth. Few things i am unable to understand are.
1 – Company maintained the earlier guidance during Q1 call even after knowing the impact of Ankleshwar closure.
2 – Ankleshwar closure was played down as a minor issue during Q1 call even after repeated queries on its impact. Now they are saying that it impacted in order fulfillment in both API and CDMO.
3 – Revision of guidance downwards is also attributed partially to softness in LATAM markets specially in Argentina.
While business is always dynamic, my worry is company is not able to foresee events unfolding even beyond a quarter or they are not sharing it with the investors. Last FY as well they guided for mid teen growth, maintained it after first 2 Qs but eventually ended up in mid single digits.
Disc – Invested from lower levels.
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