Result Preview: Cipla
The BSE Healthcare index has performed in-line with the BSE benchmark index during the fourth quarter of FY12, the Sensex, rising 13% as compared to 12.6% rise in the Sensex. Most pharma / healthcare stocks have been in demand given the uncertain and volatile market conditions.
Cipla, which announces its March quarter results later in the day today, has lost 4.7 per cent in this period. Let us take a look at what top brokerages expect from the results.
Morgan Stanley expects the company to report a net profit of 279.2 crore and sales of Rs 1,793 crore. They see a 34% year-on-year jump in EBITDA at Rs 403.4 crore.
The company is expected to post net sales growth of 4.6% at Rs 1,690 crore for the fourth quarter of FY12, says an Angel Broking report. Net profit is likely to be at Rs 282 crore - a 31% rise as compared to the previous corresponding period. FY12 EPS is expected to be around Rs 14.1 with a price to earnings ratio of 21.6.
Analysts at Emkay Global feel that Cipla is likely to post a strong performance in the recently concluded quarter. They see adjusted PAT growth at 60.8% at Rs 344.1 crore, as against Rs 214 crore in Q4FY11. “The commencement of Lexapro formulation to Teva this quarter is estimated to contribute $60mn in revenues. Growth in domestic formulations is expected to be higher at 19% YoY. Net sales are expected to grow by 18% to Rs 1970.7 crore," states their earnings preview report on the company.
According to analysts at Motilal Oswal, the fourth quarter topline is to grow 4.9% YoY to Rs 1,750 crore, impacted by 1.4% YoY growth in export sales on account of decline in API exports on a high base. The domestic formulations business is likely to grow 12.3% YoY to Rs 718 crore. They expect a healthy growth in EBITDA despite muted growth in topline on the back of margin expansion on account of increased capacity utilization at Indore SEZ and depreciation of Rs v/s dollar.
“Cipla's quarterly performance has been disappointing for the past many quarters (except for 2QFY12). It continues to face short-term headwinds in ramping up its formulation export business despite favourable currency. From a long-term perspective, the manufacturing infrastructure, strong chemistry skills, and huge inhaler capacity make it a partner of choice for global MNCs that are ramping up their generics and emerging market presence," states their report.
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