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Cipla reached its 52-week high of Rs 661, up 3% on the BSE, ahead of its July-September quarter (Q2FY18) results on Tuesday, November 7, 2017. The brokerage firm Kisan Ratilal Choksey Shares and Securities expect a robust quarter for the company with rise in revenues by 2 % year-on-year (y-o-y) and 8.48% quarter-on-quarter (q-o-q) due to company's increasing presence in emerging markets and domestic market revenues getting stabilised post Goods and Service Tax (GST). The EBITDA (earnings before interest, taxes, depreciation and amortization) margin is expected to grow by 24.98% q-o-q due to low base effect in Q1FY18. We expect net profit to grow by 16.48% y-o-y and 3.6% q-o-q, the brokerage firm said in Q2FY18 result preview. “Revenue is expected to grow 11% y-o-y/18% q-o-q. While US revenue (USD100mn) is expected to be stable y-o-y and q-o-q in CC, India business is expected to grow 15%. South Africa/ Europe/ Emerging market is expected to grow 12%/43%/3%.
Expect EBITDA margin to improve around 115bps y-o-y and around 140bps q-o-q benefitting from the rebound in the domestic business,” Edelweiss Securities said in result preview. According to Emkay Global Financial Services Q2FY18 should be an unremarkable quarter for Cipla from a US launch perspective. However, overall consolidated numbers should see a strong recovery q-o-q, driven by recovery of the India business from the GST impact. Overall, India formulation revenues at Rs 1,420 crore should be flat yoy but up 12% qoq. US formulation revenues would also be flat yoy at Rs 660 crore given the lack of any new notable launches, the brokerage firm said in Q2FY18 results preview. At 03:11 PM; the stock was up 2.6% at Rs 656 on the BSE, as compared to 0.22% rise in the S&P BSE Sensex. A combined 1.99 million shares changed hands on the counter on the BSE and NSE so far.