Alembic sees India sales recovering from Q1FY21, expects 10-12% growth - (Business Standard via NewsPoints Desk)

  • After nearly flat domestic sales growth in the December quarter, Alembic Pharmaceuticals said it expects 10% to 12% growth from the April to June quarter, Business Standard reported on Sunday.
  • "The first hint of it will be seen in the March (ongoing) quarter, though domestic sales (growth) would be roughly flat this (financial) year," said chief financial officer R K Baheti.

  • The financial results for the third quarter showed the US business grew a little over 60%, while India sales growth was barely 1%, as the company stopped its discount scheme for institutional sales.

  • Analysts agree, with ICICI Securities noting that Alembic Pharma's India business revenue grew only 0.8% year-on-year in the third quarter; those from speciality therapies fell 3.9%, on account of this restructuring of trade practices.

  • "This is expected to normalise from Q1 of FY21 as the base effect kicks in,"  ICICI Securities added.

  • Anand Rathi Share and Stock Brokers estimate 12% to 13% growth in 2021 for the India business, as most of the company's restructuring is complete.

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