Abbott India posts Q2 profit rise on strong demand, price hikes
Nov 7 (Reuters) -Drugmaker Abbott India ABOT.NS reported a rise in second-quarter profit on Thursday, helped by strong demand for its gastrointestinal and anti-infective medications.
The company, which makes the antacid Digene, reported a profit of 3.59 billion rupees ($42.6 million) for the quarter ended Sept. 30, up nearly 15% from last year.
Revenue from operations climbed 9.3% to 16.33 billion rupees.
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KEY CONTEXT
Drugmakers such as Abbott India and rival GlaxoSmithKline Pharmaceuticals GLAX.NS, who earn most of their revenue from India, have hiked prices of certain drugs not included in the Indian government's price-capped 'essential medicines list' to boost their earnings, analysts have said.
Abbott India continued to benefit from anti-infectives and medications for gastrointestinal conditions, the company said in its latest annual report.
Last week, rival GlaxoSmithKline Pharma reported higher second-quarter profit, boosted by demand for generic drugs and vaccines.
PEER COMPARISON
Estimates (next 12 months) | Analysts' sentiment | ||||||||
RIC | PE | EV/EBITDA | Revenue growth (%) | Profit growth (%) | Mean rating* | # of analysts | Stock to price target** | Div yield (%) | |
Abbott India Ltd | ABOT.NS | 42.94 | 33.38 | 9.56 | 12.79 | Strong Buy | 4 | 0.97 | 1.41 |
GlaxoSmithKline Pharmaceuticals Ltd | GLAX.NS | 47.93 | 35.40 | 8.96 | 33.60 | Buy | 4 | 0.90 | 1.22 |
Pfizer Ltd | PFIZ.NS | 33.98 | 26.54 | 7.92 | 16.77 | Buy | 3 | 0.85 | 0.66 |
Aurobindo Pharma Ltd | ARBN.NS | 18.80 | 10.86 | 9.61 | 17.80 | Buy | 26 | 0.89 | 0.32 |
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
JULY TO SEPTEMBER STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 84.3475 Indian rupees
JULY TO SEPTEMBER STOCK PERFORMANCE https://tmsnrt.rs/3O0tqwt
Reporting by Kashish Tandon in Bengaluru; Editing by Varun H K
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