Q1FY24 Preview: Sun Pharmaceutical Industries: Revenue seen at Rs. 117,499 million, PAT at Rs. 21,560 million

1 Aug 2023 , 12:09 PM

Result date: 3^rd August, 2023

Recommendation: Buy

Target price: Rs. 1,170

Analysts at IIFL Capital Services expect Sun Pharmaceutical Industries (Sun Pharma) to post 10.4% growth in revenue over the year-ago quarter. This would include Global Specialty revenue of $240 million versus $237 million in Q4 (ex-milestones), amid scale-up of Ilumya, Cequa, Winlevi and Odomzo. They expect revenue to grow 9.6% sequentially on the back of ramp-up in Specialty even as Revlimid sales could be flat sequentially at $25 million. Revenue growth of the company’s US business could be impacted by the import alert at its Halol facility (over the year-ago quarter) and due to the Mohali consent decree (sequentially). 

The company’s EBITDA margin could expand 89 basis points over the year ago quarter and 105 basis points sequentially, despite higher spends towards research and development.

The company’s Profit After Tax or PAT could remain flat sequentially and grow by 4.6% over the year-ago quarter.

Rs. Million	June 2023 estimates	YoY change	QoQ change
Revenue	117,499	10.4%	9.6%
US (USD Mn)	439	4.2%	2.1%
India	37,258	10.0%	10.8%
EBITDA	29,980	14.4%	14.2%
EBITDA margin (%)	25.5%	89 bps	105 bps
Profit After Tax	21,560	4.6%	0.0%

Source: IIFL Research