Cipla is likely to report strong performance in the quarter ended March aided by growth in both domestic and US markets.
The pharmaceutical company’s consolidated net profit is expected to rise 47 percent year-on-year to Rs 605.7 crore, according to an average of five brokerages polled by Moneycontrol.
Consolidated revenue from operations is likely to grow 13 percent to Rs 5,196 crore. The company will report its numbers later today.
Brokerage firm IIFL Securities expects sales from the domestic business to surge 16 percent.
The growth in India business, which contributes the most to revenues, was aided by the spread of the Omicron variant in the early months of the March quarter, which boosted demand for COVID-19 treatment drugs.
The US business is also expected to do well with analysts expecting mid-single digit sequential rise in sales to around $155 million aided by the launch of lenreotide drug and continued market share gains in albuterol generic. Motilal Oswal Financial Services expects US sales to jump 17 percent on year to $162 million in the quarter.
On the operating front, performance is expected to be strong with consolidated operating profit expected to rise 32 percent on year to Rs 1,051 crore aided by a low base.
On the operating margin front, analysts expect consolidated margins to expand 220-380 basis points on year to 19.5-21.3 percent in the March quarter.
At 11:57 am, shares of Cipla were down 1.5 percent at Rs 924.6 on the National Stock Exchange.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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