Aurobindo Pharma is set to report its fourth quarter numbers today. The company's revenue is expected to grow 24-25 percent and EBITDA of around 31 percent with a profit growth in the region of 26 percent.
In terms of geographies, the US formulation is expected to rise and be the key driver because majority of the sales come in from the regulated market.
Street is watching for a double-digit growth from the EU business, like it did last quarter with a growth of 10 percent.
Management commentary will be keenly watched with regards to the three units under official action indicated (OAIs). The street will also look out for the Sandoz acquisition and its integration plans.
- Overall sales to be driven by formulation business which is over 80 percent of sales
- Sales to be driven by US business
- US business sales seen at $325 million against $271 million YoY
- US business reflecting stable sales of anti-biotic injection, Ertapenem
- Rest of the World estimated to grow around 23-24 percent YoY
- EU estimated to grow around 15-20 percent YoY
- EU will reflect full quarter of revenue from Apotex acquisition
- API sales expected to be stable YoY
- Anti-retro viral sales also to be supported by a low base
- Margins seen at around 19-22 percent
- Margins could be aided by lower employee cost and other expenses as a percentage of sales