Sun Pharmaceutical Industries Q3FY22 Preview: Revenue seen at Rs 95,196 million, PAT at Rs 17,452 million

31 Jan 2022 , 09:15 AM

Result date: 31^st January, 2022
Recommendation: Add
Target price: Rs. 920

(Source: IIFL Research)

Sun Pharmaceutical Industries (Sun Pharma) is likely to post revenue growth of 8% on a YoY basis, and flat sequentially. The company’s global specialty segment is likely to grow its revenues 7% over Q2FY22 amid ramp up of Ilumya/Cequa and strong initial Rx trends in Winlevi. On a YoY basis, Ilumya’s integrated unit (IU) could post volume growth of ~72% and Cequa’s IU volumes could increase ~30%. Initial Rx launch trends for Winlevi are also encouraging, led by Winlevi’s novel mechanism of action of targeting hormonal imbalance in acne.

Sun Pharma’s EBITDA could increase 8% as compared to the year ago quarter. PAT could decline 6% YoY to Rs17,452 million.

Important management insights to watch out for:
·         Launch pipeline
·         Breakeven of specialty business
·         Margin drivers
 

Rs. Million	December 2021 estimates	YoY change	QoQ change
Revenue	95,196	8%	0%
EBITDA	24,751	9%	(6%)
PAT	17,452	(6%)	(15%)

Source: Company, IIFL Research