In today’s briefing:
- Miss in 3Q; US / higher RM costs drag down earnings
- Pick of the Week – Tata Power Company Limited
- HSIE Results Daily: ITC, Titan, Dabur, GAIL (India), Cadila Healthcare, Emami, Balaji Amines, JK…
Miss in 3Q; US / higher RM costs drag down earnings
Cadila Healthcare (CDH) delivered lower-than-expected 3QFY22 earnings, weighed by lower Domestic Formulation (DF) / US / EM sales and increased operational costs. CDH continues its effort to build the product pipeline and niche launches (including g-Revlimid) for the US market. Even innovation-led products are advancing well in the respective clinical stages of development.
Pick of the Week – Tata Power Company Limited
Tata Power is India’s largest integrated power company.
HSIE Results Daily: ITC, Titan, Dabur, GAIL (India), Cadila Healthcare, Emami, Balaji Amines, JK…
Cadila Healthcare: Cadila’s Q3 revenue/EBITDA missed our estimates by ~3%/9% due to lower-than-expected sales in India/EMs and higher R&D and other expenses. The company expects its India business to grow in strong double digits in FY23. While it guides for a flattish FY23 in the US, it aspires to take US revenue to ~USD1bn (vs. ~USD800mn in FY22e) by FY24e. However, we believe this is far-fetched, given that it hinges on multiple factors like Moraiya resolution in CY22, normalised price erosion in FY23, and timely launch of two high-value products.
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