Q1FY23 Preview: Sun Pharmaceutical Industries: Revenue seen at Rs100,707 million, PAT at Rs16,510 million

28 Jul 2022 , 11:40 AM

Result date: 29^th July, 2022
Recommendation: Add
Target price: Rs960
Source: IIFL Research

Sun Pharmaceutical Industries (Sun Pharma) is likely to witness high-single digit sales growth in its US business, as strong execution in specialty sales compensates partly for flattish sales in Taro. Domestic formulation business could witness 9-10% decline in sales as COVID-related sales slowdown. Revenue growth is estimated at 4.2% over the year-ago quarter.

The Profit After Tax or PAT though could fall ~17% over the year-ago quarter owing to weak operating profitability.

Important management insights to watch out for:

• Outlook on ramp up of specialty segment across markets
• Progress report of clinical trials for additional indication(s) of Illumya
• Margin drivers

(Rs million)	June 2022 estimates	YoY change
Revenue	100,707	4.2%
Profit After Tax	16,510	(16.9)%

Source: Brokerage reports