Cipla Q4 results preview: Revenue, PAT may post double-digit growth, EBITDA margins likely to expand

Pharma major, Cipla will be in focus on Friday ahead of its Q4 numbers. The company is expected to report double-digit growth in the bottom-line and top-line front for the quarter. Also, EBITDA margins are expected to improve ahead. Cipla has a strong product launch pipeline which is expected to play out well for the company ahead.

On BSE, Cipla's share price closed at ₹943.70 apiece flat compared to the previous closing. The stock traded in the range of ₹949.85 apiece to ₹935.25 apiece.

As of April 11, Cipla's market value stood at ₹76,171.42 crore.

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What to expect in Cipla Q4FY23?

Prathamesh Masdekar, Research Analyst, Stoxbox said, "Cipla is expected to post strong revenue growth when it reports fourth quarter results on Friday. The numbers are likely to be driven by low-teens growth in India business, while the US business is expected to grow in high single-digits as strong growth from Revlimid is likely to be partially offset by lower sales from Albuterol."

Masdekar added, "The EBITDA margin is expected to improve mainly driven by a better product mix. Overall, Cipla has a strong product launch pipeline for the US, India & Emerging Markets which is expected to play out well in the future. We will keep a close watch on the upcoming product launches, continued demand in key therapeutic areas, and the management’s continued focus on cost optimization measures."

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Further, ICICI Direct added that “revenues are expected to grow 12.3% YoY to ₹5,908 crore, mainly due to expectations of uptrend visible from both domestic formulations (+15%) and US business (+20%). RoW is likely to showcase 12% YoY growth whereas South Africa is expected to degrow 15%.”

The brokerage added, "we expect gRevlimid to show strong volume growth. EBITDA is expected to grow 77.3% YoY to ₹1,329 crore. EBITDA margins are expected to increase 50 bps YoY to 23%. Subsequently, adjusted PAT is likely to double YoY to ₹813 crore."