Q3FY23 Preview: Cipla: Revenue seen at Rs60,866 million, PAT at Rs9,048 million

24 Jan 2023 , 11:19 AM

Result date: 25^th January, 2023

Recommendation: Buy

Target price: Rs1,185

Cipla is likely to maintain strong sales performance in the US during the quarter. Domestic formulation sales could grow in high single digits over the year-ago quarter, reflecting a high base of COVID opportunities. Analysts at IIFL Capital Services expect revenue to grow 11% over the year-ago quarter, led by ramp-up in Albuterol Sulfate and launch of Revlimid in the US.

EBITDA margin could expand 104 basis points over the year-ago quarter on the back of launch of niche products in the US and a better product mix.

Cipla could post 24% year-on-year growth in Profit After Tax or PAT during the quarter. Healthy operational performance and higher other income could aid this growth.

Important management insights to watch out for:

• Update on niche pipeline including Peptide assets/Inhalation Assets/gAbraxane
• Margin outlook

	December 2022 estimates	YoY change	QoQ change
Revenue (Rs mn)	60,866	11%	4%
EBITDA (Rs mn)	14,310	16%	3%
EBITDA margin	23.5%	104 bps	(33) bps
Profit After Tax (Rs mn)	9,048	24%	3%

Source: IIFL Research