Views on Ipca Laboratories 3QFY2014 results - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP - Research - Pharma, Angel Broking) on Ipca Laboratories 3QFY2014 results:

"Ipca Laboratories, posted results better than expected on the net profit levels, mainly on back of OPM expansion, which was better than expected. On the sales front, the company posted net sales of Rs. 815cr V/s Rs. 824cr, posting a yoy growth of 17.7%. The growth was lead by the exports sales, which rose by 19.1% yoy, while domestic sales posted a growth of 15.3% yoy. The domestic formulation sales grew by 15.8% yoy. The OPM came much ahead of expectation, which expanded by 284bp yoy to end the period at 24.5%. On back of the same, the adjusted net profit came in at Rs. 141cr V/s expectation of Rs. 123cr, registering a growth of 60.3% yoy. This came inspite of the higher tax outgo during the period, which was around 26% of PBT V/s 19% of PBT during the last corresponding period, mainly on back of better than expected OPM, higher other income (Rs. 23cr V/s Rs. 13cr in 3QFY2013) and reduction in the interest expenses( Rs. 5cr V/s Rs. 26cr in 3QFY2013). We remain neutral on the stock."

Source : Equity Bulls

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