Sun Pharma shares will be closely watched as the firm reports its results for the July-September 2024 period later today. Analysts anticipate that the company will report solid revenue growth in the second quarter, led by the domestic business's favorable seasonality and expanding volumes.
According to four brokerages' average estimates, revenue from operations will increase by 10% year on year. Meanwhile, net profit for the quarter is expected to rise up to 25% year over year.
Analysts anticipate $482 million in US revenues in the second quarter of FY25, owing to greater specialized sales, slightly higher gRevlimid sales, and a further ramp-up in gPentasa supplies from Mohali.
Gross margins are expected to rise sequentially, while EBITDA margins may decline due to increased research and development (R&D) spending.
Sun Pharma's entire revenues are expected to expand by 8% year on year, according to Kotak Equities. For the global specialist business, the brokerage expects 4% QoQ sales growth to $277 million, driven by prescription volume ramp-up for Ilumya, Cequa, Winlevi, and Odomzo.
In the second quarter of FY25, the company expects to post 10% YoY growth in India and 4% YoY growth in the rest of the world markets.
"We predict Sun Pharma's 2QFY25 gross margin to increase 30 basis points QoQ to 79.2%. We forecast R&D spending at 7.6% of revenue in 2QFY25 (+130 bps QoQ). On the EBITDA front, we forecast a 12% YoY increase to Rs 3610 crore, with an EBITDA margin decrease of 150 basis points QoQ to 27.4% due to greater R&D spending," Kotak Equities stated.
Motilal Oswal anticipates a consistent rise in the prescription run-rate of specialized medicines, which will propel the company's quarterly growth to $280 million, a 17% YoY increase.
"Any revision in R&D spends on basic clinical development of products in the pipeline is a key monitorable," it noted.
