Express Pharma

Domestic pharma companies likely to see steady growth in Q1 FY13: Analysts

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Analysts are predicting that the the domestic pharma companies will see a strong and steady growth in first quarter (Q1) of financial year 2013 (FY 13).

According to a Q1 FY13 preview from Standard Chartered Securities, based on 10 top pharma companies in their universe, the companies are likely to report 27 per cent revenue growth, US formulations growth of 32 per cent y-o-y, organic domestic growth of 16 per cent y-o-y. It is estimated that EBITDA margin will expand 200 bps y-o-y to 22.1 per cent and PBT to grow 29 per cent y-o-y.

The Standard Chartered analysts estimate that these companies are is likely to witness robust revenue outlook. Sales in Q1FY13 are estimated to grow 27 per cent y-o-y, led by US formulations (61 per cent y-o-y, helped by currency and FTFs) and domestic formulations (18 per cent y-o-y). Organic base business (ex FTFs and acquisitions) is likely to grow at 19 per cent y-o-y, aided by ~12 per cent y-o-y currency depreciation, 20 per cent y-o-y constant currency growth in base US business and 16 per cent y-