For 4QCY2016, Sanofi India posted results which were below expectations on the
sales front. The sales came in at Rs552cr v/s. Rs570cr expected, posting a yoy
growth of 5.6%. On the operating front, the EBITDA margin came in at 12.2%
(12.3% expected) v/s. 12.7% in 4QCY2015. This came in-spite of GPM (Gross
Profit Margin), which came in at 54.7% V/s 51.5% in 4QCY2016, as the other
expenses rose by 28.5% yoy. Consequently, the Adj. PAT came in at Rs51cr v/s.
Rs53cr in 4QCY2015, a yoy de-growth of 3.8%. This was against the expectations
of Rs50cr. We maintain our Neutral rating on the stock.

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