A scientist works in a lab owned by Sun Pharmaceuticals Industries Ltd in Mumbai, India. (Photographer: Abhijit Bhatlekar/Bloomberg News)

Earnings Today: Sun Pharma May See A Steep Profit Decline In Q2

India's largest drugmaker Sun Pharmaceuticals Ltd., maker of Royal Enfield bikes Eicher Motor Ltd., state-owned gas company GAIL India Ltd., and public sector lender Bank of Baroda are among companies reporting July-September quarter earnings today.

Sun Pharmaceuticals’ profit is expected to fall 68 percent over the same quarter last year as the drugmaker faces pricing pressure and competition in the U.S. Lack of any material launches during the quarter would also keep results subdued. Fresh approvals are on hold following a warning letter from the U.S. drug regulator to its Halol plant. Revenue is seen 18 percent lower at Rs 6,800 crore, according to the Bloomberg consensus estimate. Margin may contract more than 18 percentage points to 20.2 percent.

Earnings Today: Sun Pharma May See A Steep Profit Decline In Q2

What To Watch

  • Recovery in India business after GST-related destocking
  • Update on Halol plant warning letter
  • Impact from ramping up Odomzo and gZetia drugs

Eicher Motors may see a 26 percent rise in revenue aided by a strong sales of Royal Enfield bikes during the quarter. Profit is expected to rise 31 percent to Rs 540 crore, while operating income may rise 29 percent, according to Bloomberg consensus estimates. Operating margin may expand 80 basis points to 31.7 percent supported by higher sales volume of commercial vehicles from its joint venture with Volvo and price hikes after the implementation of new emission norms.

Earnings Today: Sun Pharma May See A Steep Profit Decline In Q2

What To Watch

  • Demand for Royal Enfield at the retail level and order book position.
  • Update on new product launches in RE.
  • Update on current demand & discount trends for commercial vehicles

GAIL India may report an 8 percent profit growth over the previous quarter due to higher gas transmission and strength in its petrochemicals business. Revenue is expected to rise 14 percent to Rs 12,999 crore, according to the Bloomberg consensus estimate. Earnings in the previous quarter were hit by a plant shutdown, resulting in a lower base. Operating income may fall 1 percent, while operating margin may contract 220 basis points to 14.4 percent. The volume of gas transmitted may improve due to a spurt in power demand and lower spot prices of liquefied natural gas.

Earnings Today: Sun Pharma May See A Steep Profit Decline In Q2

What To Watch

  • Transmission volume
  • Guidance on trading volume
  • Petrochemicals profitability

Bank of Baroda may see a 25 percent drop in profit over the same quarter last year to Rs 414 crore, according to the Bloomberg consensus estimate. Net interest income may rise 3.5 percent to Rs 3,547 crore. The lender is expected to see lower treasury gains sequentially, while loan growth is seen picking up to around 8 percent. Fresh slippages too are expected to reduce from the previous quarter.

Earnings Today: Sun Pharma May See A Steep Profit Decline In Q2

What To Watch

  • Provisions for accounts in RBI's second list
  • Incremental stress creation
  • Commentary on asset quality
  • Commentary on growth and fund raising plans

Other Results Today

  • Bata India
  • Cadila Healthcare
  • CEAT
  • Corporation Bank
  • Godrej Industries
  • Grasim Industries
  • Indiabulls Real Estate
  • Indo Count Industries
  • Infibeam Incorporation
  • IPCA Laboratories
  • JP Associates
  • JK Tyre & Industries
  • Karur Vysya Bank
  • MRPL
  • MOIL
  • NBCC
  • NLC India
  • Reliance Capital
  • Tata Global Beverages