Sun Pharmaceutical Industries Ltd is expected to report single-digit growth in revenue for the quarter ended December amid moderate sales in the US and India.

Higher spending towards research and development (R&D) may constrain growth in the operating profit, said analysts.

The drugmaker is expected to report a nearly 8% year-on-year (YoY) growth in consolidated net profit to Rs 2,329 crore, according to the average of estimates given by six brokerage firms.

Consolidated revenue is seen rising 9% YoY to Rs 12,265.40 crore, and operating profit may grow 7% to Rs 3,208.40 crore, the estimates showed.

The country’s largest pharmaceutical major is scheduled to release its third quarter earnings on Wednesday.

Arm Taro Pharmaceutical Industries, which released earnings last week, reported a 13% growth in revenue for the December quarter to $157 million, aided by new product launches. The net profit nearly tripled from the year-ago period to $20.2 million.

Here’s summarising analysts’ expectations on the earnings of the drug major.

Kotak Equities

We expect overall sales to grow 8% YoY, albeit flat QoQ. We are building in $448 million US sales (4% QoQ), led by 3% QoQ sales growth for Taro and 5% QoQ growth in ex-Taro sales, with resumption of supplies from Mohali, and slight increase in gPentasa volumes. For the global specialty business, we bake in flat QoQ growth to $242 million, led by continued scale-up of Cequa and Odomzo drugs, offset by a slight moderation in Ilumya and Winlevi drugs. We build in 9% and 10% YoY growth, respectively in India and ROW/EMs in Q3.


Sun Pharmaceutical reported 10% sales growth on account of sequential ramp-up in gRevlimid sales ($45 million) and sustained double-digit growth in US specialty business (+10% QoQ) as well as domestic formulations (+10%), despite a muted show by arm Taro.

Margins to remain firm at 26.6%, resulting in a 10% rise in EBITDA. With continued healthy operating performance and financial deleveraging, PAT is estimated to grow by 18%.

Nuvama Institutional Equities

US revenue saw up 4% QoQ in constant currency terms ($450 million), mainly driven by specialty sales and gradual uptick in Mohali shipments. US specialty business to see good uptick: Cequa TRx (+10% QoQ) and Ilumya (+9% QoQ/+27% YoY) continue to grow.

Taro US revenue flattish at $95 million. We expect domestic formulations to grow at a healthy rate of 11% YoY due to addition of field force, albeit on a weak base. We expect overall

EBITDA margins at 26% (-50 bps YoY) due to higher R&D.

Motilal Oswal Securities

US sales expected to grow by 9% YoY to USD458m on the back of steady traction in the specialty portfolio. Expect DF sales to grow 8% YoY for the quarter. Update on potential launch pipeline over the next 12-15 months. The outlook on R&D spend for FY24/FY25, based on the projects undergoing different phases of clinical trials.

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