Q2 revenues grew 6% YoY to Rs 1361 crore (I-direct estimate: Rs 1447 crore) mainly due to 21.2% YoY growth in API segment to Rs 381 crore partly offset by 1.4% YoY de-growth in domestic segment to Rs 536 crore. Export formulation revenues grew 6.9% YoY to Rs 364 crore. EBITDA margins improved 586 bps YoY to 26.5% (I-direct estimate: 28.0%) due to higher gross margins, lower other expenditure. Hence, EBITDA grew 36.2% YoY to Rs 360 crore (I-direct estimate: Rs 405 crore). PAT grew 38.3% YoY to Rs 267 crore (I-direct estimate: Rs 300 crore) in line with operational performance.
OutlookWe arrive at our target price of Rs 2665 (26x FY23E EPS of Rs 102.5).
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