Pharma Q3 Preview: Superior Product Mix, Lower Opex To Drive Earnings Growth, Says Motilal Oswal 

Pharma Q3 Preview: Superior Product Mix , Lower Opex To Drive Earnings Growth, Says Motilal Oswal

White capsules are displayed for a photograph at a manufactuting plant. (Photographer Ariana Lindquist/Bloomberg)

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Motilal Oswal Report

The aggregate sales growth for companies under our coverage is expected to be steady at 11% YoY for Q3 FY21. Factors such as -

1. a favorable product mix and

2. an increase in operational cost at a slower rate versus sales growth are expected to keep profitability at elevated levels, driving much higher YoY growth of 29%/41% YoY in Ebitda/profit after tax for the quarter.

On a sequential basis, we expect sales/Ebitda/PAT to moderate to Rs 538 billion/Rs 129 billion/Rs 77 billion on -

  1. one-time Covid-19 specific opportunities in Q2 FY21 and
  2. reduced export incentive benefits.

Click on the attachment to read the full report:

Motilal Oswal Healthcare Q3FY21 Result Preview.pdf
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