Pharmaceuticals - Robust earnings performance to continue - Angel Broking

We expect our coverage pharmaceutical companies to continue reporting a good set of numbers. Excluding Cipla (for which corresponding consolidated figures are not available for 3QFY2013), we expect a strong 41.7% yoy growth in earnings during the quarter supported by expansion of 17.6% yoy in revenue and 242bp yoy in margin performance. The strong performance of exports in the sector has also contributed to top-line growth. We expect Sensex pharmaceutical companies to post a 27.5% yoy top-line growth and margin expansion of 296bp yoy, resulting in a robust 43.9% yoy increase in the bottom-line.

Source : Equity Bulls

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