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Cipla Q2 profit seen down 13%, lower Nexium sales may hit margin

Pharmaceutical firm Cipla's second quarter profit is seen falling 13.4 percent year-on-year to Rs 373.34 crore on dismal operational performance. However, revenue may increase 9 percent to Rs 3,763.2 crore compared with year-ago period, according to average of estimates of analysts polled by CNBC-TV18.

November 08, 2016 / 15:43 IST
     
     
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    Pharmaceutical firm Cipla's second quarter profit is seen falling 13.4 percent year-on-year to Rs 373.34 crore on dismal operational performance. However, revenue may increase 9 percent to Rs 3,763.2 crore compared with year-ago period, according to average of estimates of analysts polled by CNBC-TV18.

    Domestic business contributes 40 percent to sales and the rest is export.

    The growth in revenue growth is likely on account of low base in Q2FY16 & consolidation of Invagen (recent US acquisition) sales. Export formulations are likely to grow around 12-14 percent to around Rs 2,050-2,100 crore in September quarter.

    Domestic business may grow around 12-14 percent to over Rs 1,400 crore YoY, driven by respiratory segment growth. Export API sales may be muted with a 3-4 percent growth YoY.

    Operating profit is likely to decline 16.1 percent year-on-year to Rs 662.3 crore and margin may shrink 527 basis points to 17.6 percent in Q2 due to lower Nexium sales.

    first published: Nov 8, 2016 03:43 pm

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