Pharma Q1 Results Review - U.S. Glows, Margin Revival Next: ICICI Securities

ICICI Securities Report

Windfall from the ongoing drug shortages and traction in gRevlimid sales in the U.S. drove 16% / 45% / 41% YoY increase in revenue / Ebitda /profit after tax in Q1 FY24 for the pharma companies under our coverage.

Gross and Ebitda margins rose 300 basis points / 440 bps YoY to 65.3% / 23.8% on an aggregate basis. While U.S. traction will likely continue for a couple of more quarters, National list of essential medicine-led price increase in India and softening of raw material prices could further sweeten the margin profile from Q2 FY24.

Cipla Ltd., Ajanta Pharma Ltd. and Abbott India Ltd. are our top picks in the pharma space.

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