Preview: Lupin PAT seen up 4% YoY; higher input cost to dent margins

NEW DELHI: Lupin Ltd is slated to come out with its second quarter results for the financial year 2013 on Tuesday. The pharma major is likely to report a 4 per cent YoY growth in its net profit for the quarter ended September 30 to Rs 279 crore from Rs 267 crore reported in the year-ago period, according to ET Now estimates.

“Higher input cost such as raw material and employee cost are likely to dent margins for the company. Lower contribution from Geodon are also likely hit margins,” according to estimates.

ET Now said domestic formulations business is likely to grow by 20-23 per cent while the exports may see growth of 35 per cent. Higher tax rates are likely to hit the bottom line of the company.

Net sales for the pharma major are likely to grow by 25 per cent to Rs 2185 crore for the quarter from Rs 1742 crore reported in the year ago period.

EBITDA is seen at Rs 433 crore, or an 8 per cent jump, in the second quarter of financial year 2013 compared to Rs 404 crore in the year ago period. EBITDA margins are likely to contract to 19.8 per cent from 23.2 per cent in the year ago period.

Factors to watch out for:

Limited competition products to aid revenues for Lupin

Limited comp products: Combivir, Geodon and Seroquel

Japanese business growth due to Irom acquisition

There will be no forex effect as Lupin is covered via hedges.