Drugmaker Cipla is expected to report a 3-6% growth in its revenues for the September ended quarter according to the estimates given by four brokerages. The topline is pegged in the range of Rs 6,892 crore - Rs 7,091 crore. Company’s net profit may go up between 4% and 5.7%, these estimates said. The bottomline could be in the range of Rs 1,168 crore to Rs 1,215 crore.The company will announce its Q2FY25 earnings on October 29, 2024, Tuesday. Estimates of Nuvama Institutional Equities, Kotak Institutional Equities, PhillipCapital and Axis Securities have been taken into account. The most conservative revenue estimates have been given by Kotak while Nuvama remains most bullish on this metric. On the net profit front PhillipCapital has lowest estimates among its peers while Axis Securities has the highest. Here’s what brokerages said: Nuvama Nuvama expects Cipla to report a revenue of Rs 7,091 crore, which could go up by 6% YoY and QoQ. The drug maker may report ist core PAT at Rs 1,178 crore, which could see a growth of 4% YoY while remaining flat on a QoQ basis.The company’s Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) could be reported at Rs 1,794 crore, gaining 3% and 5% on a YoY and QoQ basis.“We expect Cipla’s revenue to grow at 6.6% YoY with domestic business growing 7% YoY with partial recovery in the trade generics business. US business is expected to grow by 3% YoY to $235 million in absence of the major new launch during the quarter. SAGA/EM are expected to grow 8%/7% YoY. We build EBITDA to grow 3.5% YoY with EBITDA margins seeing YoY/QoQ contraction,” this brokerage said.Kotak EquitiesNet sales is seen at Rs 6,892 crore, going up by 3.2% YoY and 3% QoQ while PAT may see 5.7% uptick YoY at Rs 1,195 crore while rising by 1.5% on a sequential basis. EBITDA in the reporting quarter is expected at Rs 1,720 crore, down by 0.8% and 0.2% on a YoY and QoQ basis. EBIT margin is seen at 25 %, down by 101 points over Q2FY24 and 68 bps over Q1FY25. “We expect Cipla to report 10% YoY growth in domestic sales in 2QFY25, led by 8% growth in its organic business and contribution from Sanofi's CNS portfolio. In addition, we expect some negative impact for two months due to the transition in the trade generics model in the previous quarter,” it said. “We build US sales of $239 million (-4% QoQ), led by stable market share in Albuterol amid supply challenges for Lanreotide, along with gRevlimid sales of $30 mn (tad higher than $28 million in 1QFY25). We expect SA sales to grow 7% YoY, with growth being boosted by the Actor Pharma acquisition, while in Africa and global access, we factor in a 71% YoY decline, following the divestment of Cipla's Ugandan subsidiary, QCIL, effective November 14, 2023. In addition, we bake in 12% YoY growth in EU/ROW sales. Overall, we expect Cipla's 2QFY25 sales to grow 3% YoY (+3% QoQ),” Kotak added.PhillipCapitalPhillipCapital expects 4% growth in sales as a result of continued benefit from gRevlimid, ramp-up in Lanreotide (also from the newly launched generic one), competition in Albuterol and moderated 7% growth in domestic formulations. Revenue is pegged at Rs 6,947 crore.PAT is seen around Rs 1,168 crore, up by 5% YoY and down 2% on a QoQ basis. Margins could remain flat sequentially at 25.1% on account of gRevlimid and progress in Lanreotide ANDA (about 10% market share), this brokerage said. In line with muted EBITDA margins resultant EBITDA remains flat YoY.Axis SecuritiesAxis Securities sees a 5.3% and 5% YoY and QoQ growth in the company's revenue in the reporting quarter at Rs 7,030 crore. The PAT may hover around Rs 1,215 crore, likely witnessing a 5.1% YoY and 3.3% QoQ uptick. EBITDA could be around Rs 1,783 crore, growing by 2.8% YoY and 3.9% QoQ basis. Meanwhile, EBITDA margin is pegged at 25.4% versus 25.6% in Q1FY25 and 26% in Q2FY24.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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