Pharma company Cipla's third quarter profit is seen rising 5 percent year-on-year to Rs 359.4 crore despite healthy growth in operational income and revenue. Bottomline may be impacted by lower other income; and higher interest, depreciation and tax costs.
Revenue during the quarter is likely to grow 20 percent to Rs 3,728 crore compared with Rs 3,106.6 crore in year-ago quarter, according to average of estimates of analysts polled by CNBC-TV18.
The growth in total income is expected to be driven by integration of Invagen & Exelan (US companies acquired by the company), India and Emerging Markets.
Exports are expected to grow between 12-16 percent while US business is expected to be at around USD 110 million in Q3.
Analysts expect India business growth in range of 11-20 percent YoY while Africa and Rest of the World may report steady sales. API may see slower sales due to lower Nexium API supply.
Operating profit is seen rising 49.2 percent year-on-year to Rs 677 crore and margin may expand 360 basis points to 18.2 percent in Q3, driven by cost control including employee expenses, India & South Africa.
Research & development expenses are estimated at around 7-9 percent of sales. R&D expenses could rise in second half of FY17 as the company guided for initiation of complex generic clinical trials in US.
Commentary on approval for inhaler Seretide from UKMHRA, Goa plant approval will be closed watched.
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