Sun Pharmaceutical Industries, the healthcare major’s second quarter profit is seen rising 52.3 per cent year on year to Rs 1,685 crores on strong operational performance. According to analysts’ poll, revenue may witness an increase of 13.7 per cent to Rs 7,772.8 crores year on year, led by US sales. Operating profit may grow 28.6 per cent year on year to Rs 2,487 crores and margin may expand 370 basis points to 32 per cent.
Margin is expected to bounce back due to exclusivity of Gleevec generic year on year, improvement in Taro margins and receiving upfront payment of US$ 50 million for Tildrakizumab being studied for psoriasis. The base business margin may be stable post stability in cost base from Ranbaxy integration.
Experts says US growth may be led by Taro, 1 month exclusivity sales from cancer drug Gleevec generic and launches of other drugs like Glumetza (diabetes) generic. However, on sequential basis, there could be a lower contribution from Gleevec generic. Sun Pharma had 6-month exclusivity on Gleevec Generic and exclusivity expired in July. India may bounceback after sluggishness in five quarters. Analysts expect 10 to 12 per cent growth in Q2 against 8 per cent in the first quarter.
Rest of the World business is likely to grow around 15 to 16 per cent and API at over 50 per cent year on year may be aided by full quarter of consolidation of GSK’s opiates business. Commentary on Halol is a key to watch out for. Meanwhile, Taro Pharmaceutical has reported a 7.2 per cent degrowth in second quarter profit at US$ 123.7 million but operating income increased US$ 16.6 million to US$ 141.6 million and margin expanded 300 basis points to 61.9 per cent compared with year-ago period.
Sun Pharma share price is 679.10, up by 2.78 per cent or 18.35 points at 10.53 AM on NSE.
No comments:
Post a Comment