Healthcare major Sun Pharmaceutical Industries' second quarter profit is seen rising 52.3 percent year-on-year to Rs 1,685 crore on strong operational performance.
According to analysts polled by CNBC-TV18, revenue may increase 13.7 percent to Rs 7,772.8 crore year-on-year, led by US sales.
Operating profit may grow 28.6 percent year-on-year to Rs 2,487 crore and margin may expand 370 basis points to 32 percent.
Margin is expected to bounceback due to exclusivity of Gleevec generic YoY, improvement in Taro margins and receiving upfront payment of USD 50 million for Tildrakizumab being studied for psoriasis. Base business margin may be stable post stability in cost base from Ranbaxy integration.
Analysts says US growth may be led by Taro, 1 month exclusivity sales from cancer drug Gleevec generic and launches of other drugs such as Glumetza (diabetes) generic. However, on sequential basis, there could be a lower contribution from Gleevec generic.
Sun Pharma had 6-month exclusivity on Gleevec Generic and exclusivity expired in July.
India may bounceback after sluggishness in five quarters. Analysts expect 10-12 percent growth in Q2 against 8 percent in Q1.
Rest of the World business is likely to grow around 15-16 percent and API at over 50 percent YoY may be aided by full quarter of consolidation of GSK’s opiates business.
Commentary on Halol is a key to watch out for.
Meanwhile, Taro Pharmaceutical has reported a 7.2 percent degrowth in second quarter profit at USD 123.7 million but operating income increased USD 16.6 million to USD 141.6 million and margin expanded 300 basis points to 61.9 percent compared with year-ago period.
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