Ranbaxy likely to post Q3 loss at Rs 25.9 cr: P Lilladher

Prabhudas Lilladher has come out with its second quarter (July-September) earnings estimates for the healthcare sector. The brokerage house expects Ranbaxy Laboratories to a loss of Rs 25.9 crore during September quarter as against profit of Rs 754.2 crore in a year ago period.

Revenues of Ranbaxy Laboratories are expected to increase by 9.7 percent Q-o-Q (up 9.4 percent Y-o-Y) to Rs 2,944.3 crore, according to Prabhudas Lilladher. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 7 percent Q-o-Q (down 25.9 percent Y-o-Y) to Rs 259.1 crore. EBITDA margin or operating profit margin is likely to be at 8.8 percent in September quarter as against 10.4 percent in June quarter and 13 percent in a year ago period. Prabhudas Lilladher's Report on Ranbaxy Laboratories: We expect 9 percent Y-o-Y growth and 10 percent Q-o-Q growth in core sales of the company in Q3FY13E on the back of favourable currency and traction in Absorica sales in US domestic formulation is likely to decrease by 1 percent on DPCO impact though we expect lower inventory adjustment due to lower sales growth over the past 12-24 months. Core EBITDA margin to decrease by 419bps in Q3FY13E due to additional cost on FDA consulatants and forex impact in fixed costs. The company is likely to report forex loss of Rs 1.6 billion in Q3FY13E. 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.