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Anand Rathi Report
Suven Pharmaceuticals Ltd.'s pharma contract development and manufacturing organisation sales (down 21% QoQ to Rs 2 billion) were less than expected as the contribution from one Covid-19 molecule wasn't as huge as expected.
Specialty CDMO clocked sales of a good Rs 1.3 billion (up 30% QoQ); formulation sales were Rs 184 million (up 28% QoQ).
Suven Pharma's gross margin was steady at 69-70%. Staff costs and other expenses were higher (more transportation and distribution costs) at respectively 8.6% (average 6-6.5%) and 17.4% of sales (versus average 14-15%).
This translated to a 43% Ebitda margin. The higher tax rate (43% versus average 25-33%) eroded profit, which was Rs 917 million (42% YoY, adjusted for the share of profit from rising pharma).
We slightly trim our earnings estimate, factoring in higher formulations sales (boosted from Casper's site) which would drag on margins.
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