Q2 Watch: Pharma profits to soar over 75%

 Analysts expect the sector to witness an average profit growth of more than 75% in the second quarter this year on the back of various restructuring and inorganic growth initiatives undertaken by the companies.

 Prashant Nair, India-based pharmaceutical analyst of Global financial major Citigroup, said that earnings growth is gaining momentum in the domestic pharma sector after a tough period in the past two years. "We expect the sector to witness 77% year-on- year and 18% quarter-on-quarter growth in aggregate profits in the quarter ended September 30," Nair said.

 According to Citigroup Investment Research estimates, companies like Ranbaxy, Aurobindo Pharma, Dr Reddy's Labs and Jubilant Organosys might report two to eight-fold jump in their second quarter net profits.

 The quarter is expected to mark high growth for sector leaders on the back of various restructuring efforts as well as low-base effect, while large overseas acquisitions are adding to the growth rate of certain companies, Citigroup said in a research note.