For the quarter, the Alembic Pharmaceutical posted sales and profit, below expectations. The sales and net profit came in at Rs 5.39 billion V/s Rs 5.68 billion expected and Rs 840 million V/s Rs 880 million expected respectively, thus posting a yoy growth of 11.7% yoy and 31.7% respectively. The growth in the sales was lead by the domestic formulation business, which posted a yoy growth of 18.0%.
Other segment, which did well, was API, which posted a yoy growth of 20.0%. The international generic posted a growth of 9% yoy, while Indian generics de-grew by 12% yoy.
Commenting on the result, Sarabjit Kour Nangra, VP research, Pharma, Angel Broking, said, ''The international branded segment posted flat sales. On the operating front, the gross margins came in at 64.8% V/s 60.8% in 2QFY2014; consequently taking the operating margins to 21.2% V/s 19.6% in 2QFY2014. This along with the lower interest expenditure, which dipped by 31.9% yoy, aided the PAT to come in at Rs 841 million V/s Rs 638 million in 2QFY2014, a growth of 31.7%. We maintain our neutral rating on the stock.''