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Last Updated : Oct 26, 2016 10:42 AM IST | Source: CNBC-TV18

Cadila Health Q2 profit seen up 2%, margin may shrink on biz mix

Pharma company Cadila Healthcare is expected to report a 2.3 percent growth in second quarter profit at Rs 399.83 crore and 0.7 percent rise in revenue at Rs 2,477.2 crore on yearly basis, according to average of estimates of analysts polled by CNBC-TV18.

 
 
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Pharma company Cadila Healthcare is expected to report a 2.3 percent growth in second quarter profit at Rs 399.83 crore and 0.7 percent rise in revenue at Rs 2,477.2 crore on yearly basis, according to average of estimates of analysts polled by CNBC-TV18.


Operating profit is expected to fall 7.1 percent year-on-year to Rs Rs 577.1 crore and margin may contract 200 basis points to 23.3 percent due to adverse business mix.


Analysts expect sequential pick up in revenue on account of company launching ulcerative colitis drug Asacol HD during the quarter as an authorised generic in US markets.

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Analysts are divided on growth in US formulations. Some analysts expect US business to grow around 3-5 percent YoY on account of sales of Asacol HD whereas some expect flat to decline YoY on lower sales of HCQS, an anti-malarial drug and slower US approvals.


They expect India business to pick up to double digits (at around 10-12 percent) in Q2, which grew 6.2 percent in Q1FY17.


Latin America such as Brazil can recover on account of price hikes and product launches while Europe and joint venture sales may remain muted.

Commentary on US business and likely reinspection by USFDA of Moraiya facility will be closely watched.



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First Published on Oct 26, 2016 10:42 am
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