Pharma company Cipla is expected to report robust earnings for July-September quarter, driven by export formulation business. Profit is likely to surge 74.4 percent year-on-year to Rs 520.9 crore, aided by operational performance. It will announce its earnings on November 5.
Revenue is seen rising 28.7 percent to Rs 3,562.7 crore in quarter ended September 2015 compared to Rs 2,767.3 crore in year-ago period.
Nexium (used to treat certain stomach and esophagus problem) & Pulmicort (used to prevent asthma attacks) supply may boost company's export formulation business during the quarter. Hence, export formulation business may grow around 35-40 percent year-on-year.
Cipla supplies Nexium generic to Teva in the US and Pulmicort formulation to Sandoz. It earned around USD 70-75 million from Nexium generic in Q1.
Sandoz has launched all three strengths of Pulmicort respules, a respiratory drug, in October. Hence, supply of Pulmicort may aid earnings during the quarter but more of income may be reflected in Q3, feel analysts.
Domestic business may grow around 14-15 percent due to high base in year-ago period and export API is likely to grow around 25-30 percent during the quarter.
Operating profit is seen rising 42.3 percent year-on-year to Rs 794.4 crore and margin may expand 212 basis points to 22.3 percent in quarter gone by
Key things to watch out for would be European Union inhaler portfolio, observations listed on Indore Plant, acquisition of Invagen & Exelan Pharma for USD 550 million.
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