The drugmaker will release its earnings for the third quarter on Tuesday.
According to an ETNow poll, the drugmaker’s consolidated revenue for the quarter ended December is seen rising 12.5% on-year to Rs 11,100 crore.
Consolidated net profit, however, is likely to fall 2.6% YoY to Rs 2,070 crore. Operational profit, calculated as earnings before interest, taxes, depreciation and amortisation (EBITDA), is seen rising 12% on-year to Rs 2,920 crore, while operating margin is seen largely flat at 26.3%.
Following is a gist of analysts’ expectations from the fourth largest global specialty generic pharmaceutical company:
Kotak Institutional Equities
The brokerage expects the company to deliver a steady performance, with a 11% YoY topline growth. It is building in $410 million US sales (down 0.5% QoQ), driven by lower sales from Halol unit, which will be offset by gradual ramp-up in the specialty portfolio.
Ilumya, Cequa and Odomzo drugs have been scaling up well, while Levulan sales are expected to pick up in a seasonally strong quarter.
While secondary sales data suggests Winlevi sales have slightly improved sequentially, the extent of recovery is lower than the brokerage’s expectations.
Sun Pharma’s market share has inched up further in gPentasa and gCiprodex. It is building in 10% and 8% YoY growth in India and rest of the world markets, respectively in 3QFY23.
Prabhudas Lilladher
Growth momentum will continue for the specialty product portfolio. Domestic formulation business will continue to grow healthy. The impact of import alert on Halol unit will be a key monitorable.
Securities
US sales are expected to grow 8% YoY to $429 million; price erosion in arm Taro Pharmaceutical’s portfolio is likely to be a drag on the US growth.
The outlook for the specialty portfolio will be monitored given COVID-led volatility.
An update on patient recruitment for additional indication related to Illumya drug and approval for generic Revlimid-Asacol drugs will be eyed.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
