Weak Q3 show, margin pressures to keep Sanofi stock under pressure

Growth led by power brands and new launches could recover as pandemic impact wanes

Sanofi India posted muted December quarter results with revenues missing street estimates. While reported revenues were down 13 per cent over the year ago quarter the base quarter included export sales to Zentiva which has been discontinued from May last year.

In addition to the reduction of Rs 115 crore of exports sales, analysts at Nirmal Bang Research believe the weak turnover was partly attributed to some therapy areas being impacted negatively due to the Covid-19 restrictions. 

Adjusted for the sale of Ankleshwar plant in Gujarat, like-to like sales growth stood at- about 2 per cent. On a sequential basis