Millennium Post

Pharma sector likely to report weak Q4 numbers

Mumbai: The troubled pharma sector is expected to report weak Q4FY18 numbers, with PAT likely to decline by 9 per cent (year-on-year) and appreciation in rupee may put pressure on realisations, industry analysts said.
"We estimate the pharma sector to report weak Q4FY18 numbers - while revenue is likely to grow at 3 per cent y-o-y, PAT is expected to decline 9 per cent y-o-y. We expect US revenue to dip 2 per cent y-o-y in constant currency (cc) - five consecutive quarters of decline - led by sustained pricing pressure due to customer consolidation and rise in competition," Edelweiss research analyst Deepak Malik said here.
The rupee appreciation of 4 per cent y-o-y against the $will put further pressure on realisations. However, this is likely to be partly offset by rupee depreciation against the Euro/Rand/Yen by 11 per cent, 6 per cent and 1 per cent y-o-y, Malik said.
We forecast domestic sales to grow 11 per cent y-o-y on a low base, he said.
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