Sanofi India posted results and are below expectations on all fronts. The sales came in at Rs583cr vs. Rs600cr expected, posting a yoy growth of 5.4%. According to AIOCD, secondary sales, growth for Sanofi India was double digit. According to AIOCD, regulatory actions will have negative one-time impact of ~2% on sales of the company. We expect revenue growth to sustain in the coming quarters with improvement in volumes.On the operating front, the EBITDA margin came in at 17.8% vs. 19.0% expected and 19.7% in 3QCY2015. Consequently, the Adj. PAT came in at Rs81cr vs. Rs73cr in 3QCY2015, a yoy growth of 11.9%. This was against the expectations of Rs94cr. We maintain our Neutral rating on the stock.

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