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Weak commodity prices, delayed capex recovery and soft rural demand are the key factors that will weigh on June quarter corporate earnings, says CRISIL Research.
Sun Pharma CFO Uday Baldota said given the complexity of the merger, it is difficult to give guidance for FY16, adding that the company is undertaking remediation plans for all Ranbaxy facilities.
Sarabjit Kaur Nangra of Angel Broking is neutral on Cipla as of now because the price has run up ahead of fundamentals.
Sarabjit Kour Nangra, VP- Research, Angel Broking, believes it to be the Ranbaxy effect. However, she says 14.5 percent is very low, because after consolidation she was looking at closer to 30 percent.
Drug major Sun Pharmaceutical Industries's fourth quarter consolidated profit is likely to increase 9.7 percent year-on-year to Rs 1,659.85 crore, according to a CNBC-TV18 poll. The numbers will be announced on May 29.
The company has grown faster than the market in India and would be focused on research and development (R&D) spends going forward, said Uday Baldota, CFO, Sun Pharma.
Sun Pharmaceutical Industries will announce its third quarter earnings on Saturday. According to a CNBC-TV18 poll, net profit of the drug maker may rise 7 percent year-on-year to Rs 1,638 crore during October-December quarter, impacted by lower operating performance.
Ranbaxy Laboratories, which will soon become a part of Sun Pharma, will announce its third quarter (October-December) earnings today. Analysts expect the quarter to be a good one due to Diovan generic (is used to treat high blood pressure).
The pharma major is hopeful of maintaining its revenue growth guidance of 13-15 percent for FY15 though the margins may get impacted marginally.
Sun Pharma for its second quarter ended September 2014 a net profit of Rs 1,362 crore during the same period of previous fiscal.
Sales are expected to increase by 17 percent Q-o-Q (up 10 percent Y-o-Y) to Rs 460.9 crore, according to KR Choksey.
Prakash Agarwal, Equity Analyst, CIMB has a hold rating on Ranbaxy with target price of Rs 630/share.
After a stellar performance showed by Sun Pharmaceutical Industries yesterday in terms of its Q3 numbers, most brokerage houses are quite positive on it.
Sun Pharmaceutical Industries is going to declare Q3 numbers today. It is expected to be quite a stellar numbers that it will report.
Revenue of Sun Pharmaceutical Industries is expected to increase by 0.7 percent Q-o-Q (down 47.9 percent Y-o-Y) to Rs 4236.8 crore, according to ICICIdirect.com.
Year-on-year revenues of Sun Pharma may go up 40 percent to Rs 4,011 crore from Rs 2,865 crore and EBITDA may rise to Rs 1,761 crore from Rs 1,274 crore.
We could expect some amount of further upside coming in for Sun Pharmaceutical Industries because of Taro that reported a very strong set of numbers for Q3 FY14.
Pharma companies are likely to post 12 percent Y-o-Y revenue growth. However, excluding Wockhardt (FDA issues) and Fortis Healthcare (divestments), revenue growth is expected to be 19 percent Y-o-Y.
Uday Baldota, Senior Vice President-Finance & Accounts, Sun Pharma cautioned that the jump in operating margin to 44 percent seen during the quarter may not be sustained.
Revenues of Sun Pharmaceutical Industries are expected to increase by 8.5 percent Q-o-Q (up 42.6 percent Y-o-Y) to Rs 3799.2 crore.
Analysts expect profit after tax to grow 48 percent year-on-year to Rs 1,340 crore in the quarter gone by. Its reported PAT for Q2FY13 was Rs 319.6 crore, but there was an exceptional outflow of Rs 583.5 crore on Protonix generic; hence reported PAT stood at Rs 903 crore for that quarter.
Sun Pharma wrote-off Rs 2,517 crore to settle a patent litigation with Pfizer, which resulted in a consolidated Q1 net loss of Rs 1,276 crore. However, adjusted profit jumped 56 percent and revenue was up 32 percent, sending the stock up over 8 percent.
Vivek Kumar Pharma Analyst SBI Cap Securities and Praful Bohra Senior Research Analyst Pharma, Nirmal Bang Institutional Equities share their views on the results of both the companies.
Nirmal Bang expects Sun Pharmaceutical Industries to report a 1.1 percent growth quarter-on-quarter (rise of 28.5 percent year-on-year) in net profit at Rs 1,022.3 crore.
Prabhudas Lilladher expects Sun Pharmaceutical Industries to report a net loss at Rs 1,534.7 crore.