Shares of pharmaceutical companies are in demand and trading higher by up to 6% on the bourses.
Aurobindo Pharma, Shasun Pharmaceuticals, Sun Pharmaceutical Industries, Dishman Pharmaceuticals and Chemicals, Biocon, Ipca Laboratories, Ranbaxy Laboratories, Claris Lifesciences, Wockhardt and Cipla are up 2-6% on the Bombay Stock Exchange (BSE).
The BSE Healthcare index, the largest gainer among sectoral indices, was up 2% compared to 0.46% rise in benchmark S&P BSE Sensex at 1153 hours.
The pharmaceutical companies so far declared their December quarter earnings, have reported strong net profit growth.
Aurobindo Pharma, Shasun Pharmaceuticals, Sun Pharmaceutical Industries, Dishman Pharmaceuticals and Chemicals, Biocon, Ipca Laboratories, Ranbaxy Laboratories, Claris Lifesciences, Wockhardt and Cipla are up 2-6% on the Bombay Stock Exchange (BSE).
The BSE Healthcare index, the largest gainer among sectoral indices, was up 2% compared to 0.46% rise in benchmark S&P BSE Sensex at 1153 hours.
The pharmaceutical companies so far declared their December quarter earnings, have reported strong net profit growth.
Ipca Laboratories has rallied nearly 5% to Rs 834, also its record high in early morning deals on the BSE. The drug maker has posted a strong 58% year-on-year (yoy) jump in its net profit at Rs 139 crore for the third quarter ended December 31, 2013 (Q3FY14). The company had a net profit of Rs 88 crore in the same period previous fiscal.
Analyst expects pharmaceutical companies to continue reporting a good set of numbers.
Excluding Cipla (for which corresponding consolidated figures are not available for Q3FY2013), 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, says analyst at Angel Broking in results preview.
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, he adds.
Analyst expects pharmaceutical companies to continue reporting a good set of numbers.
Excluding Cipla (for which corresponding consolidated figures are not available for Q3FY2013), 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, says analyst at Angel Broking in results preview.
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, he adds.