Shares of Cipla fell by 3.55% to ₹1,450 each on the BSE during Tuesday’s intraday trading, ahead of the company’s Q2 earnings report for the fiscal year 2024-25, scheduled for today, October 29, 2024.
Analysts predict that Cipla will see a modest single-digit increase in both revenue and profit, with margins affected by weaker sales in the US and domestic markets. According to reports, the average net profit for Q2FY25 is estimated at ₹1,174 crore, reflecting a year-on-year rise of 1.55% from ₹1,156 crore in Q2FY24. However, profits may remain flat or dip slightly by 0.17% compared to the previous quarter’s profit after tax (PAT) of ₹1,176 crore.
The company’s average revenue is expected to increase by 4.1% year-on-year to ₹6,957 crore, up from ₹6,678 crore in Q2FY24, with a sequential rise of 3.92% from ₹6,694 crore in the June quarter of FY25.
Analysts at Kotak Institutional Equities anticipate a 10% year-on-year growth in domestic sales, driven by an 8% rise in organic business and contributions from Sanofi’s CNS portfolio. They also note potential challenges from the trade generics model transition in the previous quarter.
US sales are projected at $239 million, down 4% from the previous quarter, influenced by stable market share in Albuterol amid supply issues with Lanreotide, along with Revlimid sales expected to reach $30 million.
Axis Securities analysts suggest that Cipla may struggle to maintain stable market share in Albuterol, though it is gaining in Brovana. They predict that Albuterol, Lanreotide, Revlimid, and Brovana will help sustain US sales at around $238 million.
Cipla has a total market capitalization of ₹1.17 trillion and is trading at a price-to-earnings ratio of 61.66, with earnings per share of ₹138.72.
As of 10:52 AM, the stock was down 2.66% at ₹1,463.50, while the BSE Sensex fell 0.61% to 79,516.57.
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