What to expect from Sun Pharma in Q4
Sun Pharmaceutical Indusries' fourth quarter revenues may rise by 26 percent year-on-year to Rs 2,946 crore during the March quarter.
Sun Pharmaceutical Indusries will announce its fourth quarter (January-March) results on Tuesday. Analysts on an average expect the company to report a profit after tax of Rs 913 crore in Q4, up 11 percent over a year ago period.
But the year-on-year numbers cannot be compared because of consolidation of DUSA and URL, which were acquired in late December 2012. Revenues may rise by 26 percent year-on-year to Rs 2,946 crore during the March quarter.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to jump 33 percent Y-o-Y to Rs 1,283 crore, and operating profit margin is seen improving 230 basis points Y-o-Y to 43.5 percent. Topline numbers may vary this quarter given the slew of unknown factors in the US business, which is the key contributor. In October-December quarter, US business was 51.6 percent of total sales.US business constituents Israeli subsidiary Taro reported sales at USD 165 million for the fourth quarter, which was lower than expectations of USD 180-190 million. Both DUSA and URL are expected to contribute around USD 25-35 million to the topline of Sun Pharma.Besides Taro; US-based subsidiary Caraco will continue to contribute to the US sales.Doxycycline According to CNBC-TV18 poll, the US business might see an upside on the back of a price hike taken on DOXYCYCLINE by URL. There was a shortage of this drug in the US (an antibiotic).Continued boost from DOXIL Generic Doxil sales could be around USD 20 million within March quarter itself. Sun started supplying Doxil generic to the US since February 2012 as there was a shortage of that drugs. It wasn’t an approved drug, but Sun was allowed to sell it due to shortage. However, Sun has received USFDA approval for the drug, so there will be a continuation of sales in fourth quarter.Doxil generic injection is used to treat cases of severe ovarian cancer. Domestic business could decline Y-o-Y since the company changed its distribution pattern in Q4FY12 that resulting in one time sales of Rs 180 crore in Q4FY12.Domestic sales during third quarter FY13 were up 13 percent Y-o-Y to Rs 788.5 crore.MarginsAnalysts feel the launch of Doxycycline could also result in higher margin performance in the March quarter. Meanwhile, Taro's margins dropped quite significantly during the fourth quarter. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
