Sun Pharma Q1 net profit seen up 31% to Rs 654 cr

Sun Pharmaceutical Industries, one of the India's largest drug manufacturers by market value, is set to announce its results for the quarter ended June 2012 on Friday. Analysts on an average expect the consolidated net profit to grow by 30.58% year-on-year to Rs 654.22 crore.

Net sales are likely to go up by 41.22% to Rs 2,309.87 crore from Rs 1,635.7 crore during the same period.

Analysts feel the growth is expected to remain strong with strong operational performance in the first quarter of financial year 2012-13.

Margins will remain firm YoY due to base effect of price increases in Taro and higher margins from Doxil supply in US. Some margin pressure might be seen in Taro.

Analysts expect Sun’s base business to remain strong on the back of recent new launches in the domestic market. Moreover, Sun is likely to benefit from rupee depreciation, mainly on high export contribution (which is 62% of sales) as well as direct exposure to US market through Taro operations.

An expanding generic portfolio coupled with sustained double-digit growth in high-margin lifestyle segments in India is likely to bring in long-term benefits for Sun Pharma.
 
Today, the stock rose 0.56% to close at Rs 676.95 on the BSE.