Ranbaxy Laboratories, which will soon become a part of Sun Pharma, will announce its third quarter (October-December) earnings today. Analysts expect the quarter to be a good one due to Diovan generic (is used to treat high blood pressure). Europe and Commonwealth of Independent States (CIS) sales will be closely watched during the quarter as Ranbaxy has exposure to Russia and CIS.
According to the average of estimates of analysts polled by CNBC-TV18, revenue of the drug maker is seen going up 12 percent year-on-year to Rs 3,236 crore during October-December quarter.
Analysts expect operating profit in the wide range of Rs 447 crore to Rs 913 crore against Rs 270 crore in the year-ago period and margin in the range of 15.7-26.7 percent against 9.3 percent in Q3FY14. In Q2FY15, Ranbaxy had reported operating profit at Rs 807 crore and margin at 24.8 percent.
Profit is expected to be in the wide range of Rs 98-633 crore during the quarter compared to a loss of Rs 159 crore in same quarter last fiscal and a profit of Rs 478 crore in previous quarter.
Expectations
Diovan generic or Valstratan may continue contributing in Q3, but numbers may depend on how much Diovan generic contributes.
Expectations are that Diovan generic could be contributed around USD 20-40 million per month in sales. Diovan generic was one of the key contributors to Ranbaxy’s Q2 numbers.
The drug was launched in August 2014. Ranbaxy had 6-month exclusivity on the drug and exclusivity ended in January 2015.
Other drugs in US that may drive sales are Absorica generic and increase of share in Monodox generic. Market share for Absorica was 20 percent as of Q2FY15.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
