Lupin
Kotak Institutional Equities expects Lupin to report $175 mn US sales in the fourth quarter, tad lower than the preceding quarter due to lower seasonality benefit. Domestic sales are seen growing 9% YoY for the company. Overall sales in the fourth quarter are estimated to grow 10% YoY.
The company is expected to report a profit of Rs 233 crore in the fourth quarter as against a loss of Rs 518 crore in the year-ago period.
“On the gross margin front, we expect 120 bps QoQ compression to 59.3% (up 130 bps yoy). We expect EBITDA margins to expand 20 bps QoQ to 12.5% in 4QFY23 despite higher staff costs on account of the MR additions in the domestic business. We expect Lupin’s 4QFY23 EBITDA to grow 100% YoY (flat QoQ) to Rs 540 crore,” Kotak said.
Apollo Tyres
Apollo Tyres is expected to more than double its profit to Rs 308 crore from Rs 113 crore in the year-ago period.Net sales are seen growing 10% to Rs 6,139 crore. “We expect standalone revenues to decline by 1% QoQ, mainly led by ASP decline. We expect volumes to remain flat, as the decline in replacement (weakness in PCR segment) and export segment volumes would be offset by a sequential recovery in CV and PV OEM segment volumes,” Kotak said.
Westlife Foodworld
Westlife Foodworld’s profit is expected to grow 37% to Rs 21 crore for the March quarter, while sales are estimated to rise to Rs 553 crore, showing a growth of 21%.”There could be some impact of a broader discretionary slowdown on McDonald’s as well. We expect an 11% QoQ decline in ADS (versus usual 6-8% QoQ decline per seasonality) to about Rs 1.73 lakh in 4QFY23,” Kotak Institutional Equities said.
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