February 08, 2017 / 16:06 IST
TRP’s net sales for Q3 stood at Rs 14.4bn (-6.2% YoY), broadly in line with RCML/consensus estimates. The US business tanked 44% YoY (-4% QoQ) led by price erosion in the base business. Domestic business grew 12.8% YoY, a decent show amid general industry weakness post demonetisation.
OutlookWhile the company has a formidable franchise in India and Brazil, its US business will continue to weaken in the mid-term on a thin pipeline and historically lower R&D spends. We cut FY17/FY18/FY19 PAT estimates by 9%/6%/3%, factoring in a weak 9MFY17 performance. Maintain HOLD; Mar’18 TP Rs 1,535 (unchanged upon rollover from Sep’17).
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