Ranbaxy Labs Q1 net seen down 60.5% at Rs 150 cr: Emkay

Emkay Equity Advisory has come out with its first quarter (April-June) earnings estimates for the pharmaceutical sector. The brokerage house expects Ranbaxy Laboratories to report a 145.4 percent growth quarter-on-quarter (decline of 60.5 percent year-on-year) in net profit at Rs 150.1 crore.

Revenues are expected to increase by 10.1 percent Q-o-Q (down 14.7 percent Y-o-Y) to Rs 2,753 crore, according to Emkay Equity Advisory. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 81.1 percent Q-o-Q (down 71.5 percent Y-o-Y) to Rs 280.5 crore. EBITDA margin or operating profit margin is likely to be at 10.2 percent in June quarter as against 6.2 percent in March quarter and 30.5 percent in a year ago period. Emkay Equity Advisory report on Ranbaxy Laboratories Revenue will decline by 15 percent to USD 494 million due to the lack of Lipitor exclusivity. US revenue is assumed at USD 107 million on back of launch of Absorica (8 percent MS in USD 400 million market). Expect Europe and domestic business growth of 10 percent and 13 percent respectively. EBITDA margins at 10.2 percent on back of increased cost related to USFDA issue. Expect PAT INR 1,965 million. During Q2CY13, Ranbaxy paid USD 500 million penalty to USFDA to settle all its pending claims which will reduce its interest income.