Friday, May 6, 2011

Result Flash - Cadila - 4QFY2011 - Accumulate

Dear All,

 

Forwarding you the Result Flash on Cadila for 4QFY2011 with an Accumulate recommendation and a Target Price of `972 (12 months).

 

 

4QFY2011 Financials Snapshot:

 

 

Y/E March (Rs cr)

4QFY2011

3QFY2011

% chg (qoq)

4QFY2010

% chg (yoy)

Net sales

1,169

1135

3.0

816

43.2

Other income

48

35

35.4

36

33.3

Gross profit

731

777

(6.0)

525

39.1

Operating profit

184

224

(18.0)

159

15.7

Net profit

179

162

10.5

119

50.7

 

4QFY2011 Financials Actuals v/s Estimates

 

 

`cr

Actual

Estimates

Variance

Net Sales

1,169

1,012

15.5

Other income

48

36

33.1

Operating profit

184

200

(8.3)

Tax

10

27

(61.3)

Net profit

179

148

21.2

 

 

4QFY2011 Consolidated Financial Result Highlights-  

 

·         The Net Sales for the quarter under review for the company stood at `1169cr (`816cr) an increase of 43.2% yoy, higher than our estimates of `1,012 cr. The domestic and exports sales increased by 23.2% and 63.9% respectively.

 

·         The gross margins came in at 62.5% (64.4%) during the quarter. Consequently, the OPM decreased to 15.7% (19.4%), due to the higher employee cost which increased by 77% yoy to `195.2cr (`110.3cr). The R&D expenses during the quarter increased by 88.6% to `69.8cr (`37cr).

·         The Net Profit increased by 50.7% at `179cr (`119cr), higher than estimates of `147.6cr during the quarter.

 

·         For the full year, the net sales increased by 24.9% to `4464.7cr (`3574.2cr). The domestic and exports sales increased by 19.2% and 31.2% respectively. The OPM came in at 19.3% (19.5%). The net profit increased by 40.8% to `711 (`505.1cr).

 

The stock is currently trading at 21.4x FY2012E and 17.5x FY2013E earnings. We maintain Accumulate on the stock with the Target price of Rs 972.

 

 

4QFY2011 Consolidated Financial Performance:

 

 

Exhibit 2: 4QFY2011 Performance (Consolidated)

Y/E March (` cr)

4QFY2011

3QFY2011

% chg (qoq)

4QFY2010

% chg (yoy)

FY2011

FY2010

% chg

Net Sales

1,169

1135

3.0

816

43.2

4,465

3,574

24.9

Other Income

48

35

35.4

36

33.3

178.6

128.6

38.9

Total Income

1,216

1,170

4.0

852

42.8

4,643

3,703

25.4

Gross profit

731

777

(6.0)

525




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