Alembic Pharmaceuticals posted sales of Rs872cr (vs. Rs1,008cr in 2QFY2016), a
dip of 13.5% yoy, mainly on back of base effect. International business declined
owing to lower contribution from Abilify. On the operating front, the gross margin
is expected to come in at 72.5% (vs. 77.5% in 2QFY2016) and EBIDTA margin at
20.3% (vs. 37.2% in 2QFY2016). Consequently, the PAT is expected to come in at
Rs120cr (vs. Rs289cr in 2QFY2016), a yoy dip of 58.5%. We maintain our Neutral
rating on the stock.

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