Cipla Q2 PAT seen up 37.5% to Rs 361 cr

Drug producer Cipla's profit after tax is expected to go up by 37.5 percent year-on-year to Rs 361 crore in the quarter ended September 2012.

Revenues are seen going up by 26 percent to Rs 2,030 crore from Rs 1,615 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to rise by 37 percent YoY to Rs 501 crore in the second quarter of current financial year. Operating profit margin is seen improving significantly to 25 percent as against 22.7 in a year ago period. Revenues jumped by 23 percent to Rs 1,958 crore and profit after tax rose by 58 percent YoY to Rs 400 crore in June quarter. EBITDA surged 46 percent to Rs 539 crore. Operating profit margins increased to 27 percent while the key negative was 2 percent year-on-year decline in API sales. Going by the performance of last quarter, analysts on an average expect the September quarter will be a strong one for Cipla. Domestic formulations are expected to grow 20 percent YoY in Q2FY13 while industry average is 12.5 percent, helped by anti asthama and anti biotics segment. In the previous quarter, the domestic business went up by 30.4 percent to Rs 970 crore as against expectations of 15-20 percent and 18 percent in March quarter.  The export business will continue to be boosted by generic Lexapro supplies to Teva. In last quarter, exports grew by 23 percent YoY to Rs 810 crore as against 11 percent in March quarter and expectations of 10 percent, helped by supplies of Lexapro. Analysts feel margins will be boosted by ramp up in Indore SEZ. In previous quarter, margins improved as material cost decreased 5 percent and came down as a percentage of sales to 37.6 percent versus 42.5 percent YoY.