Oct 19, 2016 03:14 PM IST IST | Source: Moneycontrol.com

Cipla Q2 PAT seen up 11.2% to Rs 406 cr: Centrum

Net Sales are expected to increase by 2.6 percent Q-o-Q (up 6.8 percent Y-o-Y) to Rs 3687 crore, according to Centrum.

Centrum has come out with its second quarter (July-September) earnings estimates for the Pharmaceuticals sector. The brokerage house expects Cipla to report net profit at Rs 406 crore, up 11.2 percent quarter-on-quarter.

Net Sales are expected to increase by 2.6 percent Q-o-Q (up 6.8 percent Y-o-Y) to Rs 3687 crore, according to Centrum.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 8.7 percent Q-o-Q (down 15.9 percent Y-o-Y) to Rs 664 crore.

Centrum's report on Cipla

We expect Cipla’s EBIDTA margin to decline by 490bps YoY to 18.0% from 22.9% due to the absence of high-margin generic Nexium opportunity and higher R & D spend. We expect its material cost to increase by 220bps YoY to 37.4% from 35.2% due to change in product mix. 

Personnel expenses could grow by 190bps YoY to 18.9% from 17.0% due to acquisition of Invagen Pharma, US. Other expenses are likely to grow by 80bps to 25.7% from 24.9% due to the increase in R&D expenses.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sections
Follow us on
Available On