Cadila Healthcare hit an upper circuit of 10% at Rs 451.15 after consolidated net profit soared 411% to Rs 423.60 crore on 16% jump in net sales to Rs 3,762.30 crore in Q2 September 2020 over Q2 September 2019.
Profit before tax (PBT) surged 336.40% to Rs 534.20 crore in Q2 September 2020 as against Rs 122.40 crore in Q2 September 2019. Current tax expense for the quarter rose 18.4% to Rs 123.10 crore in Q2 September 2020 as against Rs 104 crore in Q2 September 2019. The Q2 result was declared post trading hours today, 2 November 2020.
EBIDTA grew to Rs 863 crore, up 36% on Y-o-Y (year-on-year) basis. The EBIDTA margin stood at 22.6% during the quarter, which improved significantly by 370 basis points (bps) compared to 18.9% registered in Q2 FY20.
Cadila Healthcare has significantly reduced its net debt by Rs 2,709 crore in the first six months of FY21, which is 40% reduction from net debt reported in March 2020. The net debt as on 30 September 2020 stood at Rs 4,031 crore as against Rs 6,740 crore as on 31 March 2020.
The company's India business which comprises human health, consumer wellness and animal health business posted sales of Rs 1,583 crore, up by 11% on a Y-o-Y basis. The pharmaceutical major gained market share in gynecology, pain management, anti-infectives, anti-diabetic and hormones portfolio during the quarter as compared to the corresponding quarter of the previous financial year. The animal health business in India saw a significant improvement in the performance during the quarter as the business posted a sales of Rs 161 crore during the quarter, with a growth of 20% on a Y-o-Y basis.
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The growth was driven by good demand and the strong equity in the market. The company's business in the US posted sales of Rs 1,709 crore, up by 18% on a Y-o-Y basis. During the quarter, the company launched six new products in the US. It received approval for 10 new products (incl. 2 tentative approvals) and filed 5 additional Abbreviated New Drug Applications (ANDAs) with the United States Food and Drug Administration (USFDA) during the quarter. The company's business in the emerging markets of Asia, Africa and Latin America grew by 12% in constant currency.
During the quarter, Cadila Healthcare received the final approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Applications (ANDAs) for Liposomal Doxorubicin injection. With this, Zydus became the first generic company to perform whole array of product development-including the current stringent USFDA requirements, manufacturing, and commercialization through its own capabilities.
Making progress with its research initiatives to fight COVID-19, the company will be completing the pre-clinical development on ZYIL 1, a small molecule NCE positioned for management of critically ill COVID-19 patients. The Phase II clinical trials of Desidustat in the management of COVID-19 is underway at Mexico. The firm has also completed Phase-II clinical trials of Pegylated Interferon Alpha-2b in India for management of COVID-19. The company has launched Remdesivir injection in India and Emerging markets at the most economical price providing greater access to the therapy by making it more affordable to patients.
Cadila Healthcare is a global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare therapies.
The scrip hit 52-week high of Rs 451.15 in morning trade today. The stock has jumped 112.10% from its 52-week low of Rs 212.70 on 13 March 2020.
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