Ranbaxy Q1 profit likely at Rs 173cr; revenue seen down 31%
Ranbaxy's first quarter net profit is seen at Rs 173 crore, compared with a Rs 1,246 crore profit in the year ago quarter, according to a CNBC-TV18 poll. The results are not really comparable since it got a boost from launch of generic Lipitor last year.
Moneycontrol Bureau
Pharma major Ranbaxy will report its earnings for the first quarter of 2013 later on Wednesday. The company, owned by Japan's Daiichi Sankyo, is likely to report a net profit of Rs 173 crore in Jan-March, down sharply from Rs 1,246 crore a year ago, according to a CNBC-TV18 poll. Revenue is seen down 31 percent to Rs 2,630 crore.The results are not really comparable year-on-year since Ranbaxy had a bumper first quarter of 2012, boosted by the launch of its generic version of cholestrol lowering drug Lipitor. Foreign exchange inflows of Rs 344 crore also helped. This quarter's earnings will be largely based on core business, with little benefits from first-to-file generic products in the US market. It will, however, get some boost from the launch of Absorica (acne treatment drug) in the US market. The company's first quarter EBITDA (earnings before interest, taxes, depreciation and amortization) is seen at Rs 243 crore, compared with Rs 1,015 crore a year ago. Operating profit margin will be likely at 9.2 percent, versus 26.8 percent."We expect a decline in Ranbaxy's revenue on account of Lipitor Base effect and poor domestic formulation growth sub 10 percent," said Antique Stock Broking.It expects Ranbaxy to report only 10 percent sales growth in 2013 due to "poor" larger one-time opportunities and poor domestic growth.KEY THINGS TO WATCH-- Revenue in US generics business
-- Revenue in Europe, India and other markets like CIS and Latin America
-- Margins in Q1
-- Outlook going ahead. Rival Glenmark has talked of a slowdown in India and slowdown in approvals by the US FDA
-- Any update on the launch of generic version of hypertension drug Diovan
-- Timeline for resolving US FDA issues under consent decreeSTOCK WATCHRanbaxy shares were down 2 percent at Rs 448.30 on NSE on Wednesday. The stock is down 9 percent since Dec-end, underperforming the broader Nifty, which has gained over 2 percent during the period. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
