Friday, January 23, 2009

I was approximately right

When I wrote a post in April 2008 about Cipla, I said I had estimated the profits of the company at INR 1032 Crore for FY2009. I wasn't very right but approximately right but for the forex losses. If you exclude the forex losses for Cipla in the last 9 months, which amounts to INR 221 Cr, the profit for last 12 months would have been INR 879 Crore where I am assuming proportional tax paid for the extra income generated. There is still one quarter left and if the rupee doesn't depreciate more, there won't be any forex losses this quarter and assuming 20% growth, the full year profits would turn out to be INR 915 Cr, 11% off by the estimate. However, actual profits would be INR 740 Cr because forex losses are actual off by around 29%, too much for the estimate.
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