Healthcare Sector – Q3 FY20 Results Analysis
2 min readHealthcare Sector Analysis
Introduction
In this article, you will get the latest quarterly result updates of Healthcare sector companies comprising in NIFTY 200. Updated as on 12th Feb, 2020.
We have already covered two sectoral analysis – Auto & Auto Ancillary sector and Banking, Finance & Insurance sector and also a Ready Reckoner of NIFTY 200 Stocks Q3 FY2019-20 results in our earlier articles.
Here, the percentage growth year-on-year (YoY%) as well as quarter-on-quarter (QoQ%) for the Market Capitalization (Mkt Cap), Revenue and Net Profit (PAT) of Healthcare sector companies in NIFTY 200 is given.
| Sr. No. | Company Name | Mkt cap QoQ% | Mkt cap YoY% | Revenue QoQ% | Revenue YoY% | Net profit QoQ% | Net Profit YoY% |
| 1 | Ajanta Pharma Ltd. | -1.90% | -17.90% | 1.30% | 34.20% | -7.60% | 60.80% |
| 2 | Alkem Laboratories Ltd. | 6.80% | 7.30% | -3.60% | 13.30% | 2.50% | 89.80% |
| 3 | Apollo Hospitals Enterprise Ltd. | 4.20% | 12.60% | ||||
| 4 | Aurobindo Pharma Ltd. | -20.50% | -37.50% | 5.10% | 12.10% | 10.40% | -0.50% |
| 5 | Biocon Ltd. | 32.60% | -5.90% | 11.20% | 13.50% | -11.30% | 1.20% |
| 6 | Cadila Healthcare Ltd. | 8.60% | -27.40% | 8.90% | 0.50% | 339.60% | -29.00% |
| 7 | Cipla Ltd. | 15.30% | -9.00% | -0.70% | 8.40% | -26.40% | 9.40% |
| 8 | Divis Laboratories Ltd. | 12.10% | 23.30% | -3.40% | 4.00% | 0.60% | -5.40% |
| 9 | Dr. Reddys Laboratories Ltd. | 7.10% | 10.50% | 6.60% | 12.50% | NA* | NA* |
| 10 | Fortis Healthcare Ltd. | -2.00% | -5.20% | NA* | |||
| 11 | Glenmark Pharmaceuticals Ltd. | 8.10% | -50.10% | ||||
| 12 | Ipca Laboratories Ltd. | 27.20% | 39.40% | -5.50% | 28.00% | 2.60% | 24.90% |
| 13 | Lupin Ltd. | 9.70% | -8.30% | -13.50% | -15.10% | NA* | NA* |
| 14 | Natco Pharma Ltd. | 7.80% | -11.90% | ||||
| 15 | Pfizer Ltd. | 29.80% | 47.30% | ||||
| 16 | Piramal Enterprises Ltd. | 4.40% | -21.10% | 5.60% | 9.10% | 30.60% | 12.00% |
| 17 | Sun Pharmaceutical Industries Ltd. | 12.40% | 0.20% | 1.10% | 5.00% | -12.30% | -29.80% |
| 18 | Torrent Pharmaceuticals Ltd. | 14.10% | 3.80% | -2.20% | -1.20% | 2.90% | 2.00% |
| Average | 8.20% | 5.80% | 1.10% | 6.00% | -41.10% | -38.90% |
*The companies were in losses in any one of the periods considered for calculation purpose and hence percentage change cannot be calculated in such cases.
Sector Update – Auto & Auto Ancillary
This quarter for Healthcare sector has not been very strong. The US is the biggest export market for Indian pharma companies. Warning letters from FDA in US has been putting pressure on pharma companies. Nine letters were issued in the year 2019. This would require companies to invest more in automation and employee training in coming days.
Key Findings
- The Indian companies operating in the US haven’t seen any significant improvements due to their limited launches.
- Lupin, Dr. Reddy’s Lab and Cipla were among the few ones who managed to deliver good numbers from the US business.
- Revenues didn’t increase much in this quarter as previous quarter’s sales were affected by flu during Monsoon.
- Sun Pharma’s top line growth is majorly due to consolidation of Pola Pharma in Japan. The decline in margins can be attributed towards higher R&D expense.
- Dr. Reddy’s Labs’ revenues were pushed due to launch of five new products and entry into nutrition products.
- Aurobindo Pharma’s highest revenue growth came from Europe due to shortages and expansion in new markets.
- Ipca Laboratories’ strong growth in API (Active Pharmaceutical Ingredient) and contribution from consolidated subsidiaries led the growth.
- For Cadila and Torrent, regulatory compliance in the US has kept growth under pressure as they have received warning letters from FDA.
- Alkem Lab’s growth in profits is largely due to acceptance in domestic base coupled with benefits from lower effective tax rate
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