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Drug maker Cipla is likely to report a net profit of Rs 356.7 crore in the fourth quarter of FY18, according to estimates of a Reuters analyst poll.
Net profit will be led by improved sales in India and South Africa and some market share gains from its recent generic launches in the US market.
The company had reported a loss of Rs 61.8 crore in Q4 FY17. On a sequential basis, net profit is expected to narrow 11 percent. It had posted a net profit of Rs 401 crore in Q3 FY18.
A Reuters poll sees a 11.8 percent YoY growth in Q4 revenue at Rs 3,899.5 crore.
"There is positive momentum for Cipla in the US as the company has been able to build market share in Renvela and Pulmicort generics. It should also gain from the launch of Viread generic in Q4. With Pulmicort generic, which is the most important launch, the company has achieved 8.1 percent market share (from 0.4% at the end of 3QFY18)," Nirmal Bang said in its earning preview.
In terms of annual sales, Pulmicort is worth about $350 million product.
HDFC Securities expects an eight percent YoY revenue growth, but expects a decline of 1.3 percent quarter-on-quarter citing higher competition in generic Renvela and lack of traction in recently launched Pulmicort respules. "EBITDA margin will contract around 20 percent (down 60 bps QoQ) owing to the higher price erosion in key products like gRenvela," it said.
Things to expect from management commentary
1. FY19 revenue and EBITDA guidance
2. Commentary on the launch of limited competition opportunities in the US
3. Clarity on recent US Food & Drug Administration inspections in Goa and Indore facilities
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