Dr Reddy's Laboratories will announce its third quarter (October-December) earnings today. According to CNBC-TV18 poll, analysts expect 39 percent growth in bottomline and 23 percent in topline.
Earnings expectations Q3FY14 Y-o-Y consolidated-Revenue may grow 23 percent to Rs 3,520 crore versus Rs 2,865 crore-EBITDA is likely to grow to Rs 791 crore versus Rs 452.5 crore-Operating profit margin may expand to 22.5 percent versus 15.8 percent-PAT may jump to Rs 506 crore versus Rs 363.3 crore
In Q3FY13, the EBITDA was down 40 percent Y-o-Y with a 480 bps decline in operating profit margin due to higher than estimated R&D costs and SG&A costs. Other one offs included forex loss of Rs 55 crore and Rs 8 crore net mark-to-market loss.
What to expect this quarter -There will be no one offs factored during December quarter-Growth will be led by US (analysts estimate 35 percent growth) and the likes of Russia / CIS market (analysts estimate 30 percent growth)-Domestic formulations may grow 8-10 percent-Pharmaceutical services and active ingredients (PSAI) will pick up over 20 percent Y-o-Y-Tax expenses may impact PAT growth
Businesses-US business will be led by scale in market share of drugs such as Reclast, Toprol XL, Dacogen generic & Vidaza Generic-Domestic portfolio will be supported by the biological portfolio-Analysts expect strong OTC sales in Russia and recovery in PSAI
EBITDA-Analysts expect growth of over 35 percent led by improving product mix I the US & Russia-EBITDA will benefit from the full benefit launch of Vidaza and Dacogen generic
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