Cipla - Q4FY13 Results; CMP: Rs402; NOT RATED - IDBI Capital

Cipla reported revenues of Rs19.7 bn for Q4FY13 lower than consensus estimates of Rs20.9 bn. Domestic formulations growth at 5.2% at Rs7.9 bn due to lower IPM growth for the quarter. Export API witnessed a 24% decline to Rs1.8 bn for the quarter.

EBITDA margin for Q4FY13 was reported at 20.8% lower than consensus estimates of 22%. Lower domestic growth and absence of exclusive revenues from Escitalopram was the primary reason for the same. Company's net profit was reported at Rs2.7 bn (consenus est Rs3.3 bn). Net profit includes Rs180 mn from forex gain in the other income.

Key Highlights from the management call :

Management has guided for a healthy double digit growth in FY14. R&D expenses as % of sales will move up by 100 bps. The domestic growth will be double digits as well.

The base business EBITDA margins for the company are in the range of 20-21%.

Approval of inhalers in EU is unpredictable. The company will be filing 8-10 own ANDA in the US market.

Indore SEZ has witnessed higher capacity utilization in the solid orals for the quarter.

Source : Equity Bulls

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