Drugmaker Abbott India's Q1 profit climbs on higher sales, price hikes

Abbott India

07/08/2024 13:49

BENGALURU, Aug 7 (Reuters) - Drugmaker Abbott India  ABOT.NS  reported a rise in first-quarter
profit on Wednesday, helped by higher sales and price hikes.
    The company, which makes the popular antacid medicine Digene, said its profit rose to 3.28 billion
rupees ($39.1 million) for the quarter ended June 30, a 13% rise from last year. 
    Its revenue from operations gained 5.3% to 15.58 billion rupees, the company said.
    
    KEY CONTEXT
    Drugmakers such as Abbott India and rival GlaxoSmithKline Pharmaceuticals  GLAX.NS , which get most of
their revenue from India, have hiked prices of certain drugs not included in the Indian government's
price-capped 'essential medicines list' in order to drive up margins, according to analysts.
    These drugmakers have been benefitting from strong demand, both in the Indian and overseas markets. New
product launches have also boosted sales. 
    GlaxoSmithKline Pharma reported a higher June-quarter profit, driven by strong demand of its generic
drugs and vaccines.
    
    PEER COMPARISON   
                                              Estimates (next 12         Analysts' sentiment        
                                                   months)                                          
                   RIC        PE     EV/EBI  Revenue     Profit    Mean      # of     Stock to      Div
                                     TDA     growth (%)  growth    rating*   analyst  price         yield
                                                         (%)                 s        target**      (%)
 Abbott India       ABOT.NS   42.66   33.03    10.68      12.84    Strong          4      0.96         1.46
                                                                   Buy                              
 GlaxoSmithKline    GLAX.NS   54.72   39.95     9.49      49.00    Buy             4      1.02         1.16
 Pharmaceuticals                                                                                    
 Pfizer             PFIZ.NS   37.69   30.10     6.89      15.31    Buy             3      1.09         0.63
 Aurobindo Pharma   ARBN.NS   20.36   11.58     9.20      15.70    Buy            25      1.07         0.32
    * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
    ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock
is trading above the PT
         
    APRIL-JUNE STOCK PERFORMANCE
   -- All data from LSEG
   -- $1 = 83.9200 Indian rupees 
    

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APRIL-JUNE STOCK PERFORMANCE    https://tmsnrt.rs/3WyRnPh
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 (Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman Mrigank Dhaniwala)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))