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Last Updated : Dec 08, 2015 04:49 PM IST | Source: CNBC-TV18

Bolivar devaluation might hit pharma cos: Analysts

Surajit Pal, pharma analyst, Prabhudas Lilladher, says receivables of Indian companies from Venezuel will be Impacted in case of currency devaluation.


Surajit Pal, pharma analyst, Prabhudas Lilladher, says pharma companies like Dr Reddys and Glenmark will be impacted in case Venezuela devalues its currency.


“Dr Reddy's revenue from Venezuela was at USD 13.7 crore in FY15 and overall USD 3 crore exposures in receivables are always maintained. Similarly, for Glenmark, the receivables exposure is around USD 2.0-2.2 crore. In the worst case scenario, the EPS impact for DRL will be around Rs 5 and Rs 3 for Glenmark”, said Surajit.


Praful Bohra, VP-Research, Religare, however, has a different opinion on Glenmark. Bohra believes the negatives on the Venezuelan exposure have already been factored into estimates. 

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Glenmark has already stopped producing much for the Venezuelan market over last 2 quarter and this is visible from their limited receivables exposure, he said, adding that he does not expect any large incremental negative.


“Glenmark has been booking sales at average rate of 15-16 bolivar per dollar, so their rate is already higher than official rate of 5-6 bolivar, which limits the impact” he said.


Religare does not have coverage on DRL.



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First Published on Dec 8, 2015 04:49 pm
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