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Analysts predict the last quarter of FY18 to be mixed bag with revenues expected to remain almost flat to a growth of lower single digit on year-on-year basis. The net profit is predicted to decline by around 9-10 percent.
As Indian drug makers brace up to report their third quarter earnings in the days ahead, analysts predict Q3 FY18 to be mixed bag with revenues expected to remain flat on year-on-year basis, though on sequential basis things may look much better.
Speaking to CNBC-TV18, Habil Khorakiwala, founder, chairman and CEO of Wockhardt said that due to demonetisation and the translational loss in pound due to Brexit lead to weak earnings this quarter.
Habil F Khorakiwala, founder, chairman and group CEO of Wockhardt says the company has replied to US food and drug administration (FDA) on issues related to its L1, Waluj and Shendra facilities and although a few issues are pending, he hopes it will be resolved soon
Habil Khorakiwala said the US FDA has completed its inspection at the Waluj facility. The US FDA also visited the Chikalthana and Aurangabad plans, he said.
Wockhardt reports disappointing Q3 earnings
Pharma companies are likely to post 12 percent Y-o-Y revenue growth. However, excluding Wockhardt (FDA issues) and Fortis Healthcare (divestments), revenue growth is expected to be 19 percent Y-o-Y.
Emkay Equity Advisory 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.
Bino Pathiparampil of IIFL, says that stock like Sun Pharma has been beating estimates for last eight quarters and the same performance is likely to continue in this quarter. Ranbaxy‘s business has been worsening over the last 2-3 quarters and one can‘t expect major improvement to happen in the base business.
Wockhardt chairman Habil Khorakiwala explains to CNBC-TV18's Archana Shukla that the PAT will get a boost on low debt-equity ratio, and high interest rates.
In an interview to CNBC-TV18 Bino Pathiparampil of IIFL shared his expectation from various pharmaceutical companies ahead for their earnings.
Anand Bagaria, senior research analyst, Finquest explains to CNBC-TV18 that pharma major Wockhardt has posted a strong run in terms of a stock performance as well as fundamentals and gained over 250% from the start of the year.
Pharmaceutical company Wockhardt has reported a consolidated net loss of Rs 192 crore for the fourth quarter of FY12 as against profit of Rs 162 crore in the corresponding quarter of last fiscal, due to exceptional loss of Rs 450 crore during the quarter.
In an interview to CNBC-TV18, Habil Khorakiwala, chariman of the Wockhardt Group said the EBITDA growth for FY12 is likely to be at 72%, while the margins are seen at 30%.