Sun Pharma Q2 Results Preview: PAT likely to grow 11.5%; gross margin may improve

Headquartered in Mumbai, the pharma major Sun Pharma is set to release its July-September results after market hours today. Zee Business research estimates consolidated PAT for the review period to grow by 11.5 per cent year-on-year (YoY) to Rs 2,649 crore on the back of improved India business. In the same quarter last year, the company's net profit stood at Rs 2,376 crore. 

The topline at the company is also seen to register 8 per cent on-year growth during the July-September quarter and come in at Rs 13,191 crore. In the corresponding period last year, the company reported revenue at Rs 12,192 crore.

EBITDA or earnings before interest, taxes, depreciation, and amortization is estimated to witness 12 per cent growth to Rs 3,610 crore as against Rs 3,214 crore reported in the same period a year-ago. Meanwhile, EBITDA margin is seen edging higher to 27.4 per cent during the reporting quarter, a 1 per cent or 100 bps increase over the same period last year.

Furthermore, the US sales at the global specialty generic pharma company are estimated at US$482 million, while revenue from the domestic business is expected to rise 10 per cent on-year during the review quarter. 

However, in the RoW (Rest of World) and emerging markets business, Zee Busines analysts peg growth to the tune of 4 per cent in the drug major's revenue. RoW  is one of the segments in Sun Pharmaceutical Industries Limited's (Sun Pharma) business.

Furthermore, analysts expect an improvement in the company's gross margins during Q2. 

Key monitorable

Investors will keep a close watch on the new launches at the pharma major.

Sun Pharma's Q1FY25 results 

For the June quarter, the company's consolidated net profit zoomed 40 per cent on-year to Rs 2,836 crore versus Rs 2,022 crore reported during the same period last year. Also, revenue from operations during the period rose 6 per cent to Rs 12,653 crore.

Sun Pharma's share price performance

In the past year, shares of Sun Pharma have outperformed Nifty Pharma with a return of as much as 68.5 per cent.