03 Nov
03Nov

MUMBAI: Drug maker Sun Pharmaceutical may report flat to single-digit growth in net profit for the quarter ended September due to lackluster domestic growth and subdued performance of its Taro unit.

Kotak Institutional Equities expects Sun Pharma NSE -0.07 % to post a 2.5 per cent decline in year-on-year (YoY) net profit, while it believes net sales may have risen 0.5 per cent. The brokerage expects Taro revenues to increase by $4 million on a quarter-on-quarter (QoQ) basis, and sees ex ..

Prabhudas Lilladher expects Sun Pharma to report a 7.1 per cent increase in net profit from a year ago, while it believes net sales may have slipped 0.2 per cent. “Taro may continue to underperform due to pricing pressure in derma products, while specialty products ramp-up also to be lower than expected,” Prabhudas Lilladher analysts said.

“Its key facility Halol continues to be under FDA issue which has slowed down new approvals, while India formulation could decline in lower single-digit .
Nomura expects Sun Pharma to report a net profit growth of 12 per cent from a year ago, while total sales may have increased 3 per cent.

ICICI Direct expects the company’s net profit growth to inch up 0.3 per cent, while it believes revenues may have edged 0.7 per cent lower.
The brokerage believes revenues may likely remain flat at Rs 8,069 crore with around 3 per cent YoY decline in US formulations offset by 15 per cent YoY growth in the API segment.

“Domestic growth is expected to remain subdued due to weak demand. Continued pressure on the Derma portfolio is likely to impact Taro's sales that are expected to decline around 10 per cent YoY to Rs 1017 crore softened by currency tailwinds ,” ICICIDirect analysts said in a note.

Source- ET news

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