Aurobindo Q1 profit seen up 8%, EBITDA margin may contract

Aurobindo Pharma's first quarter earnings growth is expected to be in single digit, especially on bottomline and operational front, on the back of strong growth in the year-ago period. Profit is seen rising 7.7 percent to Rs 447.35 crore and revenue may increase 16.7 percent to Rs 3,398 crore year-on-year, according to average of estimates of analysts polled by CNBC-TV18.

In Q1FY15, revenue grew by 70 percent and operating profit jumped 114 percent due to 2 months of Cymbalta generic sales. The pharma company will announce its earnings on August 12.

During June quarter, revenue growth may be aided by improving US and anti-retrovirals (ARV) sales. US business (which contributes around 50 percent to sales) is expected to grow 25-30 percent on the back of 5-6 ANDA launches (including Suprax in Q1). Europe & Rest of the World markets are likely to grow 5-6 percent in Q1.

Active pharmaceutical ingredients (API) business could see single digit growth of 5-7 percent.

Operating profit in June quarter may increase 7.8 percent year-on-year to Rs 709.2 crore but margin may decline 170 basis points to 20.9 percent.