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Cadila Health.: USFDA concerns loom - Views on News from Equitymaster
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Cadila Health.: USFDA concerns loom
Jan 11, 2016

Cadila Healthcare has announced its 2QFY16 results. The company has reported 15% YoY growth in net sales and an increase of 40.6% in net profits. Here is our analysis of the results.

Performance summary

  • Topline grows by 15% YoY during the quarter, led by growth in the US, and JVs.
  • Operating margins expand by 5.3% to 25.3% for the quarter.
  • Bottomline is up by 40.6% YoY, led by robust operating performance and higher other income.

Financial performance: A snapshot

(Rs m) 2QFY15 2QFY16 Change 1HFY15 1HFY16 Change
Net sales 20,635 23,738 15.0% 40,839 47,521 16.4%
Other operating income 445 857 92.6% 742 2,080 180.3%
Expenditure 16,870 18,382 9.0% 33,610 37,373 11.2%
Operating profit (EBDITA) 4,210 6,213 47.6% 7,971 12,228 53.4%
EBDITA margin (%) 20.0% 25.3%   19.2% 24.7%  
Other income 146 237 62.4% 250 446 78.1%
Interest (net) 173 127 -26.7% 353 260 -26.4%
Depreciation 733 733 0.0% 1,410 1,469 4.2%
Profit before tax 3,451 5,591 62.0% 6,458 10,944 69.5%
Tax 571 1,580 176.5% 1,096 3,303 201.4%
Minority Int/Exceptional exps 98 102   179 199  
Profit after tax/(loss) 2,781 3,909 40.6% 5,183 7,443 43.6%
Net profit margin (%) 13.2% 15.9%   12.5% 15.0%  
No. of shares (m)         1,025  
Diluted earnings per share (Rs)         67  
Price to earnings ratio (x)*         23  

*based on trailing 12 months earnings
Please note, the stock split impact is not taken for calculating EPS, since the annoucement was done during Oct 2015, that is after the Sept quarter results.

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