Sun Pharma Q1 net profit seen up 30% to Rs 1,035cr
Sun Pharma's revenue is expected to rise 23 percent year-on-year to Rs 3,287 crore, driven by over 20 percent growth in US sales. Domestic formulations sales are, however, likely to be lower due to the impact of the new drug pricing policy.
August 09, 2013 / 10:20 IST
Moneycontrol Bureau
Sun Pharmaceutical Industries will report its first quarter results on Friday. The stock ended down 3 percent on Thursday after its subsidiary Taro Pharmaceutical Industries reported a fall in its first quarter earnings.For the April-June quarter, Israel-based Taro's net profit declined 7 percent year-on-year to about USD 59 million, while net sales were down 4 percent to USD 153 million.Kal Sundaram, Taro's CEO, said that the revenue decline was principally due to a net charge taken to meet contractual obligations associated with price adjustments made in the current quarter. Despite the lower growth at Taro, there shouldn't be much growth concerns for Sun Pharma. Analysts on average expect it to report a net profit of Rs 1,035 crore, up 30 percent year-on-year, while revenue is seen rising 23 percent to Rs 3,287 crore in the first quarter, according to a CNBC-TV18 poll.The revenue growth will be driven by URL (the generic drugs business acquired from Japan's Takeda last year) and US-based Dusa Pharma, it had acquired also last year.Sun Pharma's core US sales, including URL and Dusa are expected to grow over 20 percent in April-June, while growth in the rest of the world is likely to be around 10-14 percent. Sales growth in the domestic formulations business is likely to be lower due to the impact of the new drug pricing policy.The company's EBITDA (earnings before interest, taxes, depreciation and amortization) is seen up 16 percent to Rs 1,441 crore, while operating profit margin is likely to be at 44 percent, versus 46 percent a year ago.KEY THINGS TO WATCH- US business growth in the first quarter
- Growth in India and other markets
- Margins in the quarter
- Pipeline for new drug launches
- Timeline and updates related to US FDA approvals over the next few months.
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