Healthcare company Lupin is expected to show strong growth in July-September quarter due to US business. Profit is seen rising 80 percent year-on-year to Rs 736.5 crore but interest cost may limit bottomline growth, according to analysts polled by CNBC-TV18.
Revenue is likely to jump 32.4 percent to Rs 4,938.1 crore, led by by consolidation of Gavis (acquired in 2015) and buoyant growth in US generics (driven by diabetes drugs Glumetza & Fortamet generic).
However, sequential US growth can be sluggish due to higher competition in Fortamet and Glumetza. US contribution stood at 51 percent to sales.
Analysts expect India business to recover to grow at 12-14 percent YoY to around Rs 950-1,000 crore for the quarter while Japan may grow around 12-15 percent in Yen.
Operating profit is seen rising 83 percent year-on-year to Rs 1,229.5 crore and margin may expand 780 basis points to 28 percent in Q2.
Commentary on Goa plant resolution will be closely watched. The second set of observations is still outstanding. The company received establishment inspection report from the USFDA for first set of observations and it is awaiting reinspection.The stock lost 15 percent year-to-date, the worst performing pharma stock within the Nifty YTD due to pricing pressure in US, slow approval rate of key drug opportunities and overhang of observations on Goa plant.
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