As per the estimates of Kotak Institutional Equities the company's US business may increase $20 million quarter-on-quarter (QoQ) led by Ciprodex and other recent launches.
Pharma player Dr. Reddy's Labs will release its September quarter earnings on October 28 wherein the company is expected to report improvement in revenue and adjusted PAT.
Along with the numbers, update on ANDA filings and launches over the next 12–15 months will be on investors' radar.
As per the estimates of Kotak Institutional Equities, the company's US business may increase $20 million quarter-on-quarter (QoQ) led by Ciprodex and other recent launches.
Kotak believes the company's net sales will inch up by 0.2 percent year-on-year (YoY) and 8.9 percent QoQ.
Adjusted PAT may rise 88.3 percent YoY, Kotak believes.
"We expect gross margins to normalise to 54.7 percent in the quarter. We expect EBITDA margin at 25.3 percent (up 10 bps QoQ), and expect adjusted EPS to grow 88 percent YoY," Kotak said.
Kotak expects an 18 percent YoY growth in India, driven by the full quarter impact of Wockhardt portfolio, while Russia may grow 5 percent YoY.
The rest of the world may grow at 12 percent YoY, EU at 30 percent YoY and PSAI business at 13 percent YoY, Kotak said.
Brokerage firm Motilal Oswal Financial Services expects the company's US sales to grow 21 percent YoY to $245 million on new launches.
India revenue may grow by 20 percent YoY on better traction in Chronic portfolio and addition of Wockhardt portfolio, Motilal Oswal said.
Motilal Oswal expects a 17.2 percent YoY growth in revenue and a 58.4 percent YoY jump in adjusted PAT.
EBITDA, as per Motilal Oswal, may rise 37.6 percent YoY while EBITDA margin may improve to 24.4 percent from 20.8 percent YoY.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.