Pharma major Lupin on May 28 is expected to report double-digit decline across earnings parameters for quarter ended March 2020, dented by weak US business show.
Profit is likely to fall in the range of 45-60 percent on account of sharp fall in operating income, while revenue decline could be around 12-15 percent YoY though India business may remain strong, according to brokerages.
"The US business is expected to decline by 19 percent YoY due to higher base in the previous quarter on account of Ranexa launch with 180 days of exclusivity and lack of any significant launches in Q4FY20," said Narnolia Financial Services which expects profit to decline 57 percent and revenue 15 percent.
Motilal Oswal feels domestic formulation business is expected to drive revenue growth, but US sales may decline 10 percent YoY.
Kotak Institutional Equities expects domestic business to remain strong at 12 percent YoY growth, and EU and RoW (ex-SA) to grow 15 percent and 10 percent YoY, respectively. "We expect South Africa business to decline 5 percent YoY given the recent ZAR depreciation."
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At operating level, brokerages see earnings before interest, tax, depreciation and amortisation (EBITDA) declining 30-50 percent and sharp contraction in margin.
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