Cipla shares flat ahead of Q3 results: What to expect

Shares of Cipla ruled almost flat on Wednesday afternoon ahead of its financial results for the quarter to December 2018, due later in the day.

The scrip was up 0.21 per cent at Rs 509.90 at around 12.10 pm. The BSE Sensex was up 240 points, or 0.66 per cent, at 36,857.

Nirmal Bang Securities sees 12.70 per cent year-on-year rise in net profit for Cipla in Q3 FY19 on 7 per cent and 1 per cent growth in sales and Ebitda, respectively.


“We expect Cipla’s revenues to show a moderate growth of 4 per cent QoQ and an improvement of 7 per cent YoY. We expect PAT to grow 13 per cent YoY. Revenue growth will be aided by ramp-up in recent limited competition launches like Albendazole and Voltaren generics,” the brokerage firm said.

However, brokerage firm Prabhudas Lilladher projected 4.50 per cent YoY fall in adjusted net profit of Cipla on 11.60 per cent drop in Ebitda.

“Tepid growth is expected with no major boost in the US nor India formulations. Expect US revenues to be $115 million with launches of 3-4 limited competition drugs in 12 months. Margin would remain stable at 16 per cent as benefits from the US dollar would be offset from lower sales in EMs (SA),” Prabhudas Lilladher said in a report.