HomeMarketsSun Pharma shares in focus ahead of Q2 results today

Sun Pharma shares in focus ahead of Q2 results today

Shares of Sun Pharma will be in focus as the company will announce its results for the July-September 2024 period later today.

Analysts expect the company to report healthy revenue growth during the second quarter, driven by the domestic business with favourable seasonality and growing volumes.

Revenue from operations is likely to jump 10% year-on-year, according to an average estimate of four brokerages. Meanwhile, net profit for the quarter is seen rising up to 25% year-on-year.

Analysts are building in $482 million US sales in 2QFY25, primarily due to higher specialty sales, tad higher gRevlimid sales, as well as continued ramp-up in gPentasa supplies from Mohali.

Gross margins are likely to improve on a sequential basis, while EBITDA margins may drop due to higher research and development (R&D) spending.

Kotak Equities is estimating Sun Pharma’s overall sales to grow 8% YoY. For the global specialty business, the brokerage is baking in 4% QoQ sales growth to $277 million, led by prescription volume ramp-up for Ilumya, Cequa, Winlevi and Odomzo.The company is expected to report 10% YoY growth in India and 4% YoY growth in Rest of the World markets in 2QFY25.”We expect Sun Pharma’s 2QFY25 gross margin to improve 30 bps QoQ to 79.2%. We bake in R&D spends at 7.6% of sales in 2QFY25 (+130 bps QoQ). On the EBITDA front, we factor in a 12% YoY growth to Rs 3610 crore, with EBITDA margin decline of 150 bps QoQ to 27.4% due to higher R&D spends,” Kotak Equities said.

Meanwhile, Motilal Oswal is expecting a steady increase in prescription run-rate of specialty products, driving 17% YoY growth to $280 million for the quarter.

“Any revision in R&D spends on basic clinical development of products in the pipeline is a key monitorable,” it said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Content Source: economictimes.indiatimes.com

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