Sequentially weak profitability as compliance issues pile up Pharma sector is most likely to witness sequentially tepid quarter. We expect domestic business of our coverage universe to grow 11% yoy but decline 2.1% qoq. US revenue is estimated to grow 7% yoy and 4% qoq. Overall we expect our universe to see 6% yoy growth in revenue while combined PAT is expected to remain flat yoy. Combined EBITDA margins are expected to see ~140bps contraction yoy. Sun Pharma is expected to report 7.8% yoy revenue growth due to Cequa launch however PAT is likely to decline 17.5% yoy due to higher R&D;/marketing spend in the US specialty products. Lupin's PAT is expected to grow 8.6% yoy due to the domestic business and gradual ramp-up in Levothyroxine market share. Aurobindo's revenue is expected to grow 9.8% yoy but PAT is expected to decline 6.1% yoy due to competition and higher R&D; spending. Dr. Reddy's is expected to see 11.9% yoy revenue growth while PAT is likely to remain flat yoy. Biocon is also expected to benefit from Mylan's launch of...