See pharma sector's Q3 topline to grow 22%: Motilal Oswal

Motilal Oswal has come out with its earnings estimates for pharmaceuticals sector for the quarter ended December 2012. The research firm expects the topline to grow by 22 percent, EBITDA by 21 percent on the back of strong operational performance by Ranbaxy, Glenmark, Strides, Torrent and Divi's.

Motilal Oswal's report on Q3FY13 earnings estimates of pharma sector:

For 3QFY13, we expect topline growth of 22 percent YoY and EBITDA growth of 21 percent YoY for our Pharma Universe (excluding one-offs). Adjusted PAT is likely to grow 33.5 percent YoY.

EBITDA growth would be mainly led by strong performance by Ranbaxy, Glenmark, Strides and Torrent, which would witness high growth over a low base in 3QFY12. EBITDA growth would be higher than sales growth for Cipla and Divi's, aided by increased capacity utilization. Dr. Reddy's and Cadila too will report healthy operating performance driven by new product launches. Operating performance would also be partially driven by favorable currency.

Adjusted PAT growth at 33.5 percent would be higher than EBITDA growth, mainly because of high forex losses in 3QFY12 on account of appreciation of the INR v/s the USD.

Expected quarterly performance summary (INR million)

Company	Sales			Net Profit
	Dec.12	Var.	Var.	Dec.12	Var.	Var.
		% YoY	% QoQ		% YoY	% QoQ
Divis Labs	6,152	18.9	3.8	821	-3.2	-8.4
Cadila Health	16,743	21	8.3	1,842	23.4	93.6
Cipla	20,171	14.7	2.6	3,254	20.5	-18.4
Dishman Pharma	3,215	21.1	11.1	187	11.7	-29.7
Divis Labs	5,410	30.5	14.5	1,475	20.3	25
Dr Reddy's	26,823	23.1	1.3	3,417	42.1	1.9
Glenmark Pharma	12,296	25.7	0.8	1,476	1842.2	3.6
GSK Pharma	6,218	9.8	-7	1,463	-0.7	-10.6
IPCA Labs	7,292	18.6	-5.5	887	38.7	-29.1
Jubilant Life	12,998	19.6	6.6	574	LP	-48.5
Lupin	22,566	27.4	1.9	2,849	14	2.5
Opto Circuits	7,297	19.4	20.2	1,374	9.7	18.2
Ranbaxy	28,616	34.7	16.7	2,236	43.7	-17.6
Sanofi India	3,932	16.4	-0.9	377	4.5	-26.6
Strides Arcolab	6,697	-2.4	16	1,023	49.6	95
Sun Pharma	24,757	21.5	0.7	7,012	14.8	-15.7
Torrent Pharma	8,350	19.9	7.4	1,149	38.1	7.1
Sector Aggregate	219,533	21.8	5.2	31,415	33.5	-5.2

Note: Historic numbers exclude upside from one-off opportunities

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