Impact of COVID 19 on Indian Pharmaceutical, Chemical and Hospitality Sector.

1. IMPACT OF COVID-19 ON
SELECTED SECTORS OF
INDIAN STOCK MARKET
Made By:
Abdul Basit Momin
MBA IB
Amity Business School, Mumbai

2. THE COVID-19
OUTBREAK HAS
RAVAGED THE ECONOMY
LIKE NEVER BEFORE, AND
THE IMPACT IS BEING
FELT BY INDIVIDUALS,
BUSINESSES, AND
INVESTORS WHO
DEPEND ON A THRIVING
AND BULLISH MARKET
FOR GAINS AND
GROWTH. FOLLOWING
REPORT SHOWS THE
STATS OF THE 3 LISTED
COMPANIES OF THE
MENTIONED SECTORS.
PHARMACEUTICAL
CHEMICAL
HOSPITALITY

3. PHARMACEUTICAL
SECTOR
Pre and Post COVID-19 situation of any 3 listed Indian company of

4. EXECUTIVE SUMMARY
The Indian pharma sector is the third-largest in the world. It manufactures almost 60 per cent of the
vaccines used globally, including important ones, such as those against diphtheria, tetanus, and pertussis required by
the World Health Organisation (WHO). Furthermore, the country meets 90 per cent of the global demand for the
vaccine against measles.
India’s active pharmaceutical ingredient (API) industry is expected to generate $6 billion in revenues by
the end of 2020. Currently, generic drugs are playing a crucial role in the fight against COVID-19. India has been
meeting more than 20 per cent of the world and almost 50 per cent of the US’s generic drug requirements.
Unfortunately, Indian manufacturers rely heavily on China for key starting materials (KSMs), intermediate and
APIs with China catering to nearly 70 per cent of Indian pharma companies’ requirements.
The Indian pharma sector is an important component of the global healthcare infrastructure and is instrumental in
saving millions of lives every year. However, like all other sectors, it too has been affected by COVID-19 that has
brought about various changes.
Short-term impacts of COVID-19 pandemic includes demand changes, regulation revisions, research and
development process changes and the shift towards tele-communication and tele-medicine. In addition, industry
growth slow-down, approval delays, moving towards self-sufficiency in pharm-production supply chain and trend
changes in consumption of health-market products along with ethical dilemma could be anticipated as long-term
impacts of COVID-19 pandemic on pharmaceutical sector in both global and local levels.
The domestic pharma industry is expected to grow at a 4-6 per cent in FY-2021 owing to COVID-19
impact, though FY 2020-2023, CAGR is expected to be in the range of 8-11 per cent on the back of healthy demand
from the domestic market given increasing spend on healthcare along with improving access, rating agency ICRA
has said.

5. THE THREE LISTED
COMPANIES ARE:
• CIPLA LTD.
• SUN
PHARMACEUTICAL
INDUSTRIES LTD.
• LUPIN LTD.

6. CIPLALTD.
• Drug maker Cipla may report a 14-33 per cent rise in net profit for the quarter ended September from a year ago,
driven by its Covid-19 drug portfolio and cost savings.
• Cipla’s Covid-19 drugs such as Remdesivir and Tocilizumab were in high demand in the quarter as new cases
peaked in India. Nomura expects Cipla to report a 33 per cent rise in its net profit, while it believes sales may
have risen 10 per cent.
• In India, including the contribution from the consumer business, CIPLA factor in 10% growth YoY.
• Growth in domestic market is supported by
a) lower base of 2QFY20 and stronger demand of trade generics in 2QFY21F
b) higher demand for COVID-19 drugs, particularly Remdesivir and Tocilizumab
• Kotak Institutional Equities expects Cipla to report a 14.1 per cent rise in net profit, while net sales may have
increased 6 per cent from a year ago.
BSE: 500087 | NSE: CIPLA

7. CIPLALTD.

8. SUN PHARMACEUTICAL INDUSTRIES LTD.
• Shares of Sun Pharmaceutical Industries continued their rally, rising over 6%, after the company reported a 70%
jump in its consolidated net profit for the quarter ended on September 30, 2020. The stock jumped 6.31% to
INR516.85 on the BSE.
• The drug major reported a 70.36% jump in its consolidated net profit at INR1,812.79 crore for the quarter ended
on September 30, 2020 mainly on account of robust sales and exceptional tax gains.
• The company had posted a net profit of INR1,064.09 crore for the corresponding period of the previous fiscal,
Sun Pharma said in a regulatory filing.
• Consolidated revenue from operations stood at INR8,553.13 crore for the quarter under consideration, against
INR8,123.35 crore for the same period a year ago, it added.
BSE: 524715 | NSE: SUNPHARMA

9. SUN PHARMACEUTICAL INDUSTRIES LTD.
BSE: 524715 | NSE: SUNPHARMA

10. LUPIN LTD.
• The company reported consolidated net sales of INR3527.86 crore for the quarter ended 30-Jun-2020, down
6.94% from previous quarter's INR3791.0 crore and down 19.01% from the year-ago quarter's INR4355.83
crore.
• The net profit for latest quarter stood at INR106.9 crore, down 64.73% from the corresponding quarter last year.
• Consolidated total revenue from operations of the company stood at INR3,835 crore for the quarter under
consideration. It was INR3,822.21 crore for the same period a year ago.
• The company's sales for Q2 FY2021 were at INR1,332.3 crore, compared to sales of INR1,341.9 crore during
Q2 FY2020; accounting for 35% of Lupin's global sales.
BSE: 500257 | NSE: LUPIN

11. LUPIN LTD.
BSE: 500257 | NSE: LUPIN

12. Chemical Sector
Pre and Post Covid-19 situation of any 3 listed companies of

13. Executive
Summary
India’s chemicals sector is the 6 th largest in the world and has witnessed
strong growth momentum over the last couple of years. Following global supply-chain
disruptions and the government’s lockdown measures to restrict the spread of
COVID-19, Indian capital markets experienced a significant decline in March 2020,
and a subsequent rebound in April. Given the essential nature of the chemical sector,
manufacturing operations resumed shortly after the initial lockdown, reflected by a
moderate price impact for listed Indian chemical companies.
Even before COVID-19, global chemical manufacturing operations had
already increasingly relocated to India from China, which will only continue after
COVID-19 as more companies evaluate alternative supply chain solutions. Decline in
crude oil prices since the beginning of this year will also have a significant impact on
the raw material pricing from a short-term to medium-term perspective.
The short-term impact related to COVID-19 will disrupt the current year
financial performance of companies until virus-related economic disruption is
mitigated. However, companies with strong balance sheets and low debt levels will be
well-equipped to operate through the uncertainty, likely emerging stronger and more
resilient operations.
For unorganized players, the inability to adhere to strict social distancing
guidelines for resuming operations have led to loss in business to large organized
players.
Sectors like Specialty Chemicals, Agrochemicals and Pharma Intermediates
will have limited impact given their essential nature.

15. The Three Listed Companies are :
Atul Ltd.
Pidilite Ltd.
UPL Ltd.

16. • Net Sales at INR957.03 crore in September 2020 down
5.53% from INR1,013.02 crore in September 2019.
• Quarterly Net Profit at INR169.68 crore in September
2020 down 18.56% from INR208.34 crore in September
2019.
• EBITDA stands at INR255.29 crore in September 2020
up 7.13% from INR238.31 crore in September 2019.
• Atul EPS has decreased to INR57.21 in September 2020
from INR70.24 in September 2019.
• Atul shares closed at 6,003.70 on October 26, 2020 (BSE)
and has given 26.33% returns over the last 6 months and
38.90% over the last 12 months.
Atul
Ltd.BSE: 500027 NSE: ATUL

19. • Net Sales at INR1,630.23 crore in September 2020 up
3.72% from INR1,571.72 crore in September 2019.
• Quarterly Net Profit at INR338.78 crore in September 2020
up 4.53% from INR324.09 crore in September 2019.
• EBITDA stands at INR494.37 crore in September 2020 up
21.1% from INR408.24 crore in September 2019.
• Pidilite Ind EPS has increased to INR6.67 in September
2020 from INR6.38 in September 2019.
• Pidilite Ind shares closed at 1,589.40 on November 05,
2020 (NSE) and has given 14.06% returns over the last 6
months and 14.44% over the last 12 months.
Pidilite
Ltd.
BSE: 500331 |
NSE: PIDILITIND

22. UPL
Ltd.
• Net Sales at INR3,162.00 crore in September 2020 up
14.11% from INR2,771.00 crore in September 2019.
• Quarterly Net Profit at INR104.00 crore in September 2020
down 75.76% from INR429.00 crore in September 2019.
• EBITDA stands at INR489.00 crore in September 2020
down 40.87% from INR827.00 crore in September 2019.
• UPL EPS has decreased to INR1.36 in September 2020
from INR5.62 in September 2019.
• UPL shares closed at 445.35 on November 02, 2020 (NSE)
and has given 15.56% returns over the last 6 months and -
25.06% over the last 12 months.
BSE: 512070 | NSE: UPL

25. HOSPITALITY
SECTOR
Pre and Post Covid-19
25
situation of any 3 listed Indian Companies of

26. Executive Summary
The COVID-19 pandemic has taken a
severe hit on the revenues of the Indian
hospitality sector – organized, semi-organized
and unorganized. The total revenue loss for
the sector in 2020 is estimated at INR89,813
crore as against total estimated revenue of
INR1,58,113 crore in 2019, a report said.
Of this, the revenue loss for organized
players is seen at INR40,309 crore, semi-
organized at INR8,379 crore, and unorganized
at INR41,126 crore.
Upscale & Luxury Hotels which have
over 50 percent international business and
international leisure destinations with high
FIT or GIT movement. Hotels that primarily
rely on transient segments may be less
vulnerable.

27. The 3 Listed Companies are:
• EIH LTD.
• ORIENTAL HOTELS LTD.
• MAHINDRA HOLIDAYS AND
RESORTS INDIA LTD.

28. EIH LTD.BSE: 500840 | NSE: EIHOTEL
• Net Sales at INR71.92 crore in
September 2020 down 78.57% from
INR335.68 crore in September 2019.
• Quarterly Net Loss at INR115.83 crore in
September 2020 down 498.31% from
INR29.08 crore in September 2019.
• EBITDA stands negative at INR87.14
crore in September 2020 down 347.63%
from INR35.19 crore in September 2019.
• EIH shares closed at 74.15 on November
04, 2020 (BSE) and has given 3.49%
returns over the last 6 months and -
53.37% over the last 12 months.

29. EIH LTD. TREND

30. EIH LTD. FINANCIALS

31. ORIENTAL HOTELS
LTD. BSE: 500314 | NSE: ORIENTHOT
• Net Sales at INR15.75 crore in
September 2020 down 77.07% from
INR68.68 crore in September 2019.
• Quarterly Net Loss at INR17.71 crore in
September 2020 down 600% from
INR2.53 crore in September 2019.
• EBITDA stands negative at INR12.45
crore in September 2020 down 204.97%
from INR11.86 crore in September 2019.
• Oriental Hotels shares closed at 20.00 on
October 26, 2020 (NSE) and has given
14.61% returns over the last 6 months
and -42.86% over the last 12 months.

32. ORIENTAL HOTELS LTD.TREND

33. ORIENTAL HOTELS LTD.FINANCIALS

34. MAHINDRA
HOLIDAYS AND
RESORTS INDIA
LTD.BSE: 533088 | NSE: MHRIL
• Net Sales at INR185.79 crore in September
2020 down 20.44% from INR233.54 crore
in September 2019.
• Quarterly Net Profit at INR33.75 crore in
September 2020 up 88.55% from INR17.90
crore in September 2019.
• EBITDA stands at INR74.48 crore in
September 2020 up 32.53% from INR56.20
crore in September 2019.
• Mahindra Holida EPS has increased to
INR2.54 in September 2020 from INR1.35
in September 2019.
• Mahindra Holida shares closed at 167.35 on
October 30, 2020 (BSE) and has given
28.88% returns over the last 6 months and -
28.21% over the last 12 months.

35. MAHINDRA HOLIDAYS AND RESORTS INDIA LTD.
TREND

36. MAHINDRA HOLIDAYS AND RESORTS INDIA LTD.
FINANCIALS

37. THANK YOU
• https://www.moneycontrol.com/news/business/markets/
covid-19-impact-5-sectors-that-are-worst-hit-and-the-
road-ahead-for-them-5192711.html
• https://tradebrains.in/severely-affected-industries-by-
coronavirus/
• https://economictimes.indiatimes.com/markets/stocks/n
ews/coronavirus-its-impact-on-various-
sectors/information-
technology/slideshow/74490816.cms
REFERENCES