PHARMA ROI 17% OUTSHINING THE MARKET

Pharma sector remain steady in Q2FY21 led by strong export opportunity despite of muted domestic performance and concerns of Covid. Pharma Index clocked 17% gain in this quarter backed by strong Exports as INR has depreciated against Dollar and Euro as well. Pharma has been one of the few sectors to have expanded during the lockdown and even after the restarting of the economy. For the quarter ended Sep-20, Indian Pharma Market (IPM) reported a muted revenue growth of 1.0% YoY (vs -5.9% YoY in June quarter).Within that, stocks like divi’s lab, Dr. Reddy’s Lab, Cipla, Torrent Pharma performed very very well in this quarter.

Divi’s Lab was the out performer of Q2FY21 by reporting a strong gain of 33% with a rise of 45.6% in its revenue and a jump in its net profit on the back of healthy operational performance for September quarter (Q2FY21). The company also undertakes custom synthesis of APIs and intermediates; and supplies a range of carotenoids, as well as markets vitamins to nutritional, pharma, food/beverage, and feed industries. In addition, it exports its products.

Dr. Reddy performed well in Q2FY21 with a return of 30% .FY21 was a strong quarter for this company on the back of superior performance in the US & domestic markets. Revenues grew 2.0% YoY to Rs. 4911 crore mainly due to strong growth in US, Europe and Indian markets partially offset by high base effect in Q2FY20. US revenues grew 28.5% YoY to Rs. 1833 crore on the back of rupee depreciation and new product launches. Domestic revenues grew 21.5% YoY to Rs. 912 crore due to Wockhardt integration and Covid related products. Europe revenues grew 35.8% YoY to Rs. 375 crore due to new launches and currency tailwinds. Russia & Other CIS revenues grew 3.4% YoY to Rs. 600 crore ROW sales grew 6.5% YoY to Rs. 264 crore .