InvestorQ : Can I have your quick take on 2 results announced last week viz. Gland Pharma, Polycab and IDBI Bank as I am holding shares in all 3 stocks?
Anamika Sodhani made post

Can I have your quick take on 2 results announced last week viz. Gland Pharma, Polycab and IDBI Bank as I am holding shares in all 3 stocks?

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Angel dcosta answered.
4 months ago
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Let me start with Gland Pharma. It reported 23.7% growth in sales for Dec-21 quarter at Rs.1,063 crore. Its core market of the US, Canada, EU and Australia saw revenues grow 10% at Rs.665 crore. India revenues were up by 31% at a robust Rs.195 crore rest of the world (ROW) sales were up 88% at Rs.203 crore. There were slew of new launches. R&D expenses were 6.6% of revenues. Gland filed 18 ANDAs and 3 DMFs and got 4 ANDA approvals in Q3.

Net profits were up 33.77% at Rs.273 crore in the Dec-21 quarter. EBITDA margins expanded yoy from 33% to 36%. However, on a sequential basis, the net profits were down -9.62% due to higher operating costs amidst supply chain constraints. EBITDA was 32% higher in Q3 at Rs.395 crore. Net margins expanded from 23.75% in the Dec-20 quarter to 25.68% in the Dec-21 quarter. Net margins on a yoy basis took a hit due to higher costs.

I now turn to Polycab. It reported 22.8% growth in sales for Dec-21 quarter at Rs,3,372 crore. Sales of wires and cables vertical were up 24.6% at Rs.2,999 crore while sales of FMEG vertical was up 11% at Rs.340 crore. Polycab faced a lot of pressure from higher raw material costs and supply chain constraints in the quarter.

Net profits for the Dec-21 quarter was up 1.16% at Rs.247 crore due to a 39% spike in raw material costs. Operating profits of the wires and cables vertical was flat but the FMEG vertical saw sharp fall in operating profits yoy. Net margins tapered from 8.88% in the Dec-20 quarter to 7.32% in the Dec-21 quarter.

Finally, I turn to IDBI Bank. It reported 6.5% growth in revenues for Dec-21 quarter at Rs.4,121 crore. IDBI Bank saw good traction in corporate banking while top line and operating profit in treasury and retail banking remained stressed. Gross NPAs at 20.56% is still too high, although net NPAs at 1.7% shows substantial provisioning done.

Net profits were up 55.75% at Rs.612 crore on the back of turnaround in operating performance of corporate banking. Provisions for bad loans were lower yoy but higher on sequential basis. Above all, lower interest costs helped the boost in profits. PAT margins improved 400 bps from 6.49% in Dec-20 to 10.49% in Dec-21 quarter.

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