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Last Updated : Jan 25, 2017 11:02 AM IST | Source: CNBC-TV18

Alembic Pharma Q3 profit seen down 60%, margin may shrink 20%

Alembic Pharmaceuticals is expected to show massive degrowth in third quarter earnings due to unfavourable base in year-ago quarter. Profit is likely to fall 60 percent year-on-year to Rs 107 crore and revenue may slip 14 percent to Rs 794 crore in Q3, according to average of estimates of analysts polled by CNBC-TV18.

 
 
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Alembic Pharmaceuticals is expected to show massive degrowth in third quarter earnings due to unfavourable base in year-ago quarter. Profit is likely to fall 60 percent year-on-year to Rs 107 crore and revenue may slip 14 percent to Rs 794 crore in Q3, according to average of estimates of analysts polled by CNBC-TV18.


Operating profit during the quarter may plunge 57 percent to Rs 163 crore and margin may contract by 2000 basis points to 21 percent compared with same quarter last year.
 
Company's Q3FY16 revenues were aided by sales of mental health drug Abilify generic in US. Revenue surged 80 percent to Rs 922 crore, margin expanded to 42 percent (from 20 percent YoY) and profit increased 280 percent to Rs 270 crore. Even in Q2FY17, exports were down 38 percent due to high base.


Domestic business is likely to be aided by demonetisation. Analysts expect 15-18 percent domestic growth in Q3. In Q2, domestic branded formulation was up 19 percent YoY at Rs 338 crore.

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Key factors to watch out for would be commentary on US business, R&D spend (company guided for Rs 400 crore R&D spend in FY17), capex and USFDA regulatory inspections.



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First Published on Jan 25, 2017 09:02 am
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