Wockhardt Q1 PAT may dip 27% at Rs 296 cr: Emkay

Emkay Equity Advisory has come out with its first quarter (April-June) earnings estimates for the pharmaceutical sector. The brokerage house expects Wockhardt to report a 11.5 percent degrowth quarter-on-quarter (fall of 26.7 percent year-on-year) in net profit at Rs 296.3 crore.

Revenues are expected to decrease by 9.5 percent Q-o-Q (down 5.7 percent Y-o-Y) to Rs 1,345.1 crore, according to Emkay Equity Advisory.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 21 percent Q-o-Q (down 14.1 percent Y-o-Y) to Rs 431.1 crore.

EBITDA margin or operating profit margin is likely to be at 32 percent in June quarter as against 36.7 percent in March quarter and 35.2 percent in a year ago period.

Emkay Equity Advisory report on Wockhardt

Revenue will decline by 5.7 percent Y-o-Y led by decline in US business by 8 percent in dollor terms to USD 108 million (USFDA ban on Waluj plant), India business also expected to decline by 3 percent led by govt ban on proxyvon product.

Gross margins are assumed at 68.0 percent and EBITDA margins at 32.0 percent decline by 316bps Y-o-Y and 469 Q-o-Q driven by revenue decline from high margin products in US business.

Expect PAT to decline by 36.7 percent Y-o-Y to Rs 2.9 billion.