Cipla Q3: Analysts expect Q3 profit to grow 38% at Rs 372cr

Healthcare firm Cipla is set to announce its results for the third quarter of financial year 2012-13 on Wednesday. Analysts on an average expect the company to report good numbers year-on-year due to overall operational improvement.

Net profit is expected to grow by 38 percent YoY to Rs 372 crore in the quarter due to expansion in margin and revenues. Revenues are seen going up by 16.5 percent YoY to Rs 2,049 crore in the December quarter, according to CNBC-TV18 poll. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 31 percent YoY to Rs 512.7 crore and operating profit margin is seen improving by 270 basis points to 25 percent in the third quarter. In July-September quarter, EBITDA jumped 58 percent YoY to Rs 677 crore with margins improving by 700 basis points to 31 percent and profit after tax growing by 62 percent YoY to Rs 500 crore due to Lexapro generic exclusivity & favorable currency movement. According to analysts, Cipla is most likely to account for a milestone payment for Dymista generic, which was not came through in September quarter. Analysts expect it at around USD 5-10 million. Analysts expect the company to maintain domestic growth rate in the December quarter. Domestic revenue (accounts for 44 percent of sales) rose by 13.5 percent YoY to Rs 962 crore due to anti-asthma / anti-biotics / cardio segments in September quarter. The same grew by 30.4 percent YoY to Rs 970 crore in June quarter. Exports (56 percent of total sales) jumped by 38.2 percent YoY to Rs 1,039 crore and grew by 23 percent YoY to Rs 810 crore in June quarter. Active Pharmaceutical Ingredients (API) business went up by 9 percent YoY to Rs 174 crore in the second quarter.