October 19, 2016 / 15:46 IST
Centrum has come out with its second quarter (July-September) earnings estimates for the Pharmaceuticals sector. The brokerage house expects
Merck to report net profit at Rs 16.5 crore, down 7.8 percent quarter-on-quarter.
Net Sales are expected to increase by 5 percent Q-o-Q (up 5.7 percent Y-o-Y) to Rs 270.5 crore, according to Centrum.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 3.6 percent Q-o-Q (up 44 percent Y-o-Y) to Rs 27.5 crore.
Centrum's report on MerckFor Q3CY16, we expect Merck to report revenue growth of 6% YoY and 5% QoQ to Rs2.71bn. Pharma sales (78% of revenues) are expected to grow by 17% YoY to Rs2.10bn. Chemical business (22% of revenues) is likely to decline by 24% YoY to Rs605mn as the company has discontinued selling vitamin E API. The company is reducing its dependence on the low-margin chemicals business and concentrating on the high-margin pharma business. We expect the company’s flagship brands Neurobion Forte, Polybion and Nasivion to drive future growth.The net profit is set to grow by 32% YoY to Rs165mn from Rs125mn due to margin improvement.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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