Cipla Q1: Analysts see 17% drop in profit at Rs 332 cr

Cipla will declare its first quarter earnings on Friday. Analysts on an average expect profit after tax of the pharmaceutical firm to fall by 17 percent on yearly basis to Rs 332 crore, according to a CNBC-TV18 poll.

Profit after tax of first quarter of last financial year was boosted due to other income that was Rs 58 crore as against Rs 44.6 crore (including forex gain of Rs 23 crore) Y-o-Y.

PAT on an adjusted basis could be affected by higher interest costs and lower other income.

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Revenues may rise 9 percent year-on-year to Rs 2,141 crore during the quarter.

Meanwhile, earnings before interest, tax, depreciation & amortisation (EBITDA) are seen going down by 9 percent Y-o-Y to Rs 491 crore due to higher research and development cost and operating profit margin may drop 450 bps Y-o-Y to 23 percent for the quarter ended June 2013.

Analysts expect flat growth in domestic formulations business due to national pharmaceutical pricing (NPP) and high base effect while export formulations may grow on account of a low base Y-o-Y.

Key trigger would be an improvement in asset utilization at its Indore facility.

The stock surged 5 percent to close at Rs 410.70 amid large volumes on the BSE.