Aurobindo Pharma may post 18% growth in Q3 profit, US business seen up 12%

Healthcare company Aurobindo Pharma is expected to report a 18 percent growth year-on-year in third quarter profit at Rs 682 crore compared to Rs 578.6 crore in year-ago.

Revenue growth and steady margins may lead to YoY profit growth.

Revenue from operations in Q3 may increase 11 percent to Rs 4,328.4 crore from Rs 3,906.2 crore in corresponding quarter of last fiscal, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit is seen rising 13 percent year-on-year to Rs 1,009 crore and margin may expand 30 basis points to 23.3 percent YoY.

Its US business, which contributed 47 percent to total revenue, is expected to grow 10-12 percent YoY in rupee terms led by sales from kidney drug Renvela generic and ramp up in injectable segment.

Also launch of Nexium generic 24 OTC pill (for gastro) may help offset price erosion in Q3. However, sequentially the US business is expected to decline due to competition in Renvela generic.

Europe and Rest of World sales are likely to grow 15-18 percent YoY while API business is likely to be flat.

Commentary on US pricing pressure, US pipeline, regulatory plant updates and debt reduction would be keenly watched.moneycontrol

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