A 6.3% revenue growth and 17.7% PAT decline YoY with EBITDA margin drop of 370bps is expected
We expect healthcare companies to report recovery in revenue growth for the quarter ended Sep'17. This would be mainly on account of recovery in domestic formulations from negative growth in Q1FY18 which got impacted by GST implementation. However, we expect EBITDA margin decline of 370bps YoY due to continued pressure on US business and increased R&D spend. The margin and PAT decline would be primarily due to substantial drop in Sun Pharma earnings.
Increased competition and pricing pressure would continue to impact growth in US -focussed companies. We expect weak results from:
1) Sun Pharma due to continued pricing pressure in Taro portfolio and FDA issues at Halol plant,.
2) Apollo Hospitals on lower occupancy and losses in Navi Mumbai Hospital. Overall, we expect the companies to report 6.3% revenue growth and 17.7% PAT decline YoY with EBITDA margin drop of 370bps.
Some key pointers
Diese Geschichte stammt aus der November 2017-Ausgabe von Healthcare Radius.
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Diese Geschichte stammt aus der November 2017-Ausgabe von Healthcare Radius.
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