Cipla Q4 profit seen up 39%, likely to meet FY16 growth guidance

Cipla is likely to see net profit at Rs 361.76 crore in January-March quarter, up 39 percent from Rs 259.66 crore in corresponding quarter last fiscal. According to a CNBC-TV18 poll, the drug major may see revenue growing 6.5 percent to Rs 3293 crore against Rs 3092.7 crore in year-ago period.

During the quarter, EBITDA may see 20 percent growth at  Rs 610 crore versus Rs 507.7 crore while operating profit margin (OPM) may stand at 18.5 percent against 16.42 percent year-on-year.

Analysts polled by CNBC-TV18 say that Cipla is likely to meet FY16 guidance of 15 percent growth and 150 basis points (bps) margin expansion. The company is likely to guide for 20 percent sales growth for FY17 on account of support from Invagen.

Watch out for#Revenue could surprise on acct of consolidation of Invagen #Cipla acquired two US cos Invagen and Exelan Pharma in Sept 2015 for USD 550 million #With this acquisition US will contribute to 20 percent of Cipla FY17 revenue versus 8 percent pre-acquisition #Export formulations likely to be around 5-6 percent growth (YoY) due to base impact #Q4Fy15 Export formulation was 29 percent (YoY) #Export likely to be impacted by currency headwinds in South Africa, slower supplies of Nexium API to Teva likely to offset upside from supplies of drug Pulmicort #Pick up in domestic business will be closely watched#Domestic business slowed in past three quarter#This quarter domestic business likely to bounce back to 10-16 percent as inventory adjustments over in Q3FY16 #Margin range 18-19 percent to bounce back on acct of domestic biz bouncing back