Broking firm, Sharekhan has come out with its report on the Q4FY07 result preview of Wockhardt. According to the report, the company is expected to show a strong growth of 44% in its sales to Rs505.3 crore, driven by the consolidation of the Pinewood and Dumex businesses, a ramp-up in its US business on account of new launches such as Ondansetron and Darvocet, and the steady growth in its domestic and UK businesses.

The earnings before interest, tax, depreciation and amortisation margin is likely to expand by 113 basis points to 20.8%, aided partly by the capitalisation of abbreviated new drug application (ANDA) development costs. However, the increase in depreciation (due to the commissioning of the new biotech facility at Aurangabad) along with the higher interest expenses (due to the acquisitions) and the higher tax rate (due to an increase in the minimum alternative tax) will restrict Wockhardt’s net profit growth to 18.3% to Rs 67.1 crore.