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HomeNewsBusinessEarningsAurobindo Pharma Q4 profit may report double-digit growth led by key geographies

Aurobindo Pharma Q4 profit may report double-digit growth led by key geographies

The stock shot up 149 percent from its March lows especially after increased focus on healthcare worldwide due to COVID-19 crisis.

June 03, 2020 / 07:46 IST
     
     
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    Aurobindo Pharma on June 3 is likely to report double-digit growth in earnings and revenue for the March quarter driven by key geographies.

    "Profit of the company is expected to grow by 23 percent on account of improved revenues from key geographies," said Narnolia which sees growth in US business on account of spectrum acquisition along with new launches.

    But high base in the past year, fewer ANDA approvals may reduce YoY growth trajectory in US business, said Motilal Oswal which expects 10 percent growth in revenue from operations YoY.

    The brokerage expects ARV/Europe sales to drive overall growth in Q4FY20. "Outlook on alternate strategies to resolve regulatory issues and inorganic growth opportunities post the Sandoz deal falling through would be key things to watch out for."

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    Kotak Institutional Equities expects 32 percent growth in Q4 profit and 17 percent in revenue, while EBITDA (earnings before interest, tax, depreciation and amortisation) may grow 22 percent compared to year-ago.

    "We expect EBITDA margins to expand 90 bps to 20.9 percent," said Kotak.

    Narnolia sees 14 percent growth in EBITDA and 80 bps expansion in margin YoY.

    The stock shot up 149 percent from its March lows especially after increased focus on healthcare worldwide due to COVID-19 crisis.

    The stock gained 61 percent year-to-date (2020) and 12 percent in last one year, but lost 10 percent in the March quarter due to sell-off in overall equity market after the COVID crisis.

    Moneycontrol News
    first published: Jun 3, 2020 07:46 am

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