Sun Pharmaceutical Industries' third quarter profit is seen rising 4.4 percent sequentially to Rs 1,157.71 crore and revenue climbing 1.7 percent to Rs 6,955.44 crore, according to analysts polled by CNBC-TV18.
Operating profit (earnings before interest, tax, depreciation and amortisation) may increase 1.8 percent quarter-on-quarter to Rs 1,968.5 crore and margin may remain flat at 28 percent in Q3.
On yearly basis, profit is likely to jump three-fold due to low base in year-ago period. Profit in Q3FY15 was impacted due to higher tax out flow of Rs 1,028 crore & minority interest of Rs 284 crore and Halol issue & Ranbaxy integration cost. Operating profit may fall 9.1 percent and margin may shrink 270 basis points YoY.
Analysts expect flat sales on sequential basis due to Halol supply constraints and Ranbaxy integration efforts.
US business is likely to be subdued QoQ as Q2 saw USD 40 million of one time sales and Halol issues weighing. Taro earnings may aid US business. InSite acquisition (US-based eye care firm) is likely to be factored in during the quarter.
Taro Pharma's Q3 profit jumped 32.6 percent and revenue increased 8.7 percent on yearly basis.
India business is likely to grow 8-10 percent YoY & 1-2 percent QoQ.
Employee costs could be higher due to one-off compensation to outgoing Ranbaxy employees.
Commentary on Halol plant and Gleevec generic launch (cancer drug) would be closely watched.
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