Cipla PAT seen up 21% led by higher other income and lower tax rate: ET NOW Poll

NEW DELHI: Cipla Ltd is slated to come out with its second quarter results for the financial year 2013 on Monday. The world’s largest generic pharmaceutical company is expected to report a 21 per cent jump in its net profit for the quarter ended September 30 to Rs 373 crore from Rs 309 crore reported in the year-ago period, according to ET Now estimates.

The higher profits are seen on the back of higher other income and lower tax rate, according to ET NOW Poll.

Revenues of the company are likely to grow by 14 per cent for the September quarter to Rs 2023 crore from Rs 1778 crore reported in the year-ago period, led by growth of supplies of Lexapro formulation to Teva (seen around $20 miilion)

ET NOW expects the domestic formulations business to grow 17 – 19 per cent and the export business to grow 10 – 12 per cent.

EBITDA is seen at Rs 512 crore, or 17 per cent jump in the second quarter of the financial year 2013, compared to Rs 437 crore in the year ago period.

EBITDA margins are likely to expand to 25.3 per cent from 24.5 per cent reported in the year ago period on the back of higher contribution from Indore SEZ. Favourable currency movement will also aid margins over last year.

Factors to watch out:

1) Pricing policy impact update will impact earnings.

2) Income from Meda Pharma.

3) Update on Dymista.