Cipla Q1 PAT seen up 12.2% at Rs 343 cr: Motilal Oswal
Motilal Oswal expects Cipla to report a 28.2 percent growth quarter-on-quarter (rise of 12.2 percent year-on-year) in net profit at Rs 342.9 crore.
August 08, 2013 / 19:18 IST
Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the pharmaceutical sector. The brokerage house expects Cipla to report a 28.2 percent growth quarter-on-quarter (rise of 12.2 percent year-on-year) in net profit at Rs 342.9 crore.
Revenues are expected to increase by 11.3 percent Q-o-Q (up 25.3 percent Y-o-Y) to Rs 2,189 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 24.8 percent Q-o-Q (up 23.7 percent Y-o-Y) to Rs 510.9 crore.Motilal Oswal report on CiplaCipla's core top line for 1QFY14E is likely to grow 25 percent Y-o-Y to INR 21.9 billion.Domestic formulations business would be flat Y-o-Y to INR 9.34 billion on a high base effect, while export formulations would grow 72 percent Y-o-Y to INR 10.3 billion on a very low base.Core EBITDA would grow 23.7 percent Y-o-Y to INR 5.1 billion, with EBITDA margin likely contracting by 30bp Y-o-Y to 23.3 percent due to higher R&D spend.We expect adjusted PAT to grow 12 percent Y-o-Y to INR 3.43 billion on account of higher interest costs, lower other income and higher taxes.While the company has guided for double digit sales growth in FY14, we expect some moderation in growth and profitability over the coming quarters due to a high base effect.Although the large capex incurred in the past is a long term positive, we believe it is imperative for the company to improve asset utilization
at Indore to drive future growth and derive benefits of operating leverage (overhead expenses continue to adversely impact performance).The stock trades at 21.2x FY14E and 18.8x FY15E earnings. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
