Sun Pharmaceutical Industries' second quarter profit is seen rising 171 percent sequentially to Rs 1,298 crore in July-September quarter, according to average of estimates of analysts polled by CNBC-TV18. It will announce earnings on November 7.
Revenue may increase 6.4 percent to Rs 6,940.9 crore during the quarter compared to Rs 6,522.2 crore in preceding quarter. Analysts feel Halol plant remediation is likely to impact core sales growth and margin.
Sequential numbers are comparable post Ranbaxy Integration. The company reported integrated earnings for first time in Q4FY15.
Operating profit (earnings before interest, tax, depreciation and amortisation) is likely to jump 17.4 percent quarter-on-quarter to Rs 1,895 crore and margin may expand by 220 basis points to 27 percent in quarter gone by.
Operational performance improvement may be led by non recurrence or lower one off charges, Xanazine generic launch (used for huntington’s disease), stronger seasonality in domestic business and realisation of certain synergy benefits.
The company may clock around USD 15-17 million of sales from Tetrabenazine (Xanazine) during the quarter. The drug has been in market for 5 weeks and Sun has around 23 percent market share, hence price erosion may be limited.
Sun Pharma ex-Ranbaxy may grow around 18-20 percent in the domestic business, feel analysts, saying Ranbaxy could see single digit growth of 6-7 percent in domestic formulations.
Ranbaxy US sales may be led by higher share in Absorica and some price increases in derma products. Emerging market & Rest of the World sales could be impacted by adverse currency movements, say analysts.Additionally, its subsidiary Taro Pharma disappointed street with its July-September quarter earnings on November 3. Profit (net income) was down 7 percent to USD 133.3 million during the quarter compared to USD 143.4 million in year-ago period, impacted by lower revenue and weak operational performance. Revenue declined 15.5 percent to USD 212.1 million in same period.
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