Q2FY24 Preview: Sun Pharmaceutical Industries: Revenue seen at Rs. 119,820 million, PAT at Rs. 23,795 million

31 Oct 2023 , 10:22 AM

Result date: November 1, 2023

Recommendation: Buy

Target price: Rs. 1,340

Analysts at IIFL Capital Services believe Sun Pharmaceutical Industries (Sun Pharma) will be among the industry outperformers in terms of growth in the September 2023 quarter. This outperformance will be led by robust growth in chronic therapies. They expect Sun Pharma to report 9-12% organic growth in India business as compared to the year-ago quarter. Sun Pharma’s Global Specialty revenue could increase sequentially from USD232 million in June 2023 quarter to USD240 million in September 2023 quarter, driven by continued ramp-up in Ilumya, Cequa and Winlevi. Growth in the Specialty business will be more than offset by the sequential decline in Revlimid sales and limited product supplies from the Mohali plant, thereby likely driving a 4.5% sequential decline in Sun Pharma’s US sales in the September 2023 quarter. Revlimid sales could decline sequentially from $50 million in the June 2023 quarter to $30 million in the September 2023 quarter.

EBITDA margin is likely to witness contraction both as compared to the year-ago quarter and sequentially.

Profit After Tax or PAT could increase 5% over the year-ago quarter.

Rs. Million	September 2023 estimates	YoY change	QoQ change
Revenue	119,820	10.8%	1.7%
EBITDA	31,634	3.6%	(0.3)%
EBITDA margin (%)	26.4%	(186) bps	(53) bps
Profit After Tax	23,795	5.2%	1.5%

Source: IIFL Research