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This Article is From Oct 21, 2020

Motilal Oswal: Pharma Sector Q2 Earnings Preview - Sales Growth Yet To Pick Up Meaningfully

Motilal Oswal: Pharma Sector Q2 Earnings Preview - Sales Growth Yet To Pick Up Meaningfully
Tablets sit illuminated during the film-coating process in the laboratories (Photographer Krisztian Bocsi/Bloomberg)

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Following a strong performance in Q1 FY21, we expect YoY earnings growth momentum to sustain in Q2 FY21 as well, albeit at slower rate versus Q1 FY21.

We expect sales to grow at a subdued rate of 6.4% YoY, and Ebitda/profit after tax at 18.3%/18.1% YoY on an aggregate basis for the quarter.

Structural cost savings are expected on account of travelling/admin cost related to marketing and a calibrated increase in other cost factors.

This is expected to maintain QoQ profitability at the aggregate level for companies under our coverage.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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