Cipla Q4 profit, revenue could decline due to high-base effect

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26 Aug, 2025 12:21

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Pharmaceuticals company Cipla is expected to report earnings on May 15. The company may report a decline on all parameters, year-on-year, due to the high base effect.

The company had benefitted from the launch of generic drug Senipar in the US in Q4FY19.

According to brokerage houses, profit and revenue are expected to fall in the range of 1-4 percent compared to the same quarter last year as US business may decline, though India business could show double-digit growth YoY.

"We expect domestic formulations business to grow 12 percent YoY (down 5 percent QoQ). We expect the US to decline $7 million to $126 million in the quarter, given erosion in key products. We expect South Africa to decline 3 percent YoY, and expect global access to decline 27 percent YoY, European Union to grow at 7 percent and Rest of World to grow at 5 percent," said Kotak Institutional Equities which sees profit declining 4 percent and revenue 3 percent YoY.

At operating level, there could be a big fall on a year-on-year basis, but the sequential decline may be much less compared to YoY.

Kotak expects EBITDA to fall 26 percent YoY (down 6 percent QoQ) and margin to contract 515 basis points YoY (down 67 bps QoQ), with R&D likely at 7.5 percent of sales.

According to Narnolia Financial Services, EBITDA could decline 18 percent YoY and margin may contract 360 basis points YoY.

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"The medium term triggers looks quite attractive with the approval of Albuterol in place and its expected launch in FY21 and gAdvair filings by early 2020 and launch by FY22," Narnolia said.