Sun Pharma Q4 Results Preview: Net profit likely to rise 18% with steady margin

Sun Pharma Q4 FY24 Results, Sun Pharma Market News: Mumbai-headquartered Sun Pharmaceutical Industries—the country's largest pharmaceutical company—is scheduled to report its financial results for the quarter as well as the year ended March 31, 2024, on Wednesday, May 22. Analysts expect the lender to stage a steady financial performance for the final three months of the financial year 2023-24 (FY24). 

According to Zee Business research, Sun Pharma is likely to register a consolidated net profit of Rs 2,347 crore for the January-March period, which translates into an increase of 18.4 per cent over the corresponding period a year ago. The analysts expect the pharmaceutical major to clock 12 per cent year-on-year growth in revenue to Rs 12,240 crore for the March quarter.

Sun Pharma is estimated to register Rs 3,199 crore in its fourth-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA), as against Rs 2,802 crore a year ago, while maintaining its margin—a key measure of profitability for businesses—at 26 per cent on a year-on-year basis, according to the research. 

Zee Busines analysts peg growth to the tune of 12 per cent in Sun Pharma's revenue from the US, and 10 per cent in its domestic revenue. They estimate the pharma firm's research and development (R&D) expenditure to stay at 7.0 per cent of its revenue in the March quarter. 

Sun Pharma Q3 FY24 Results: A quick recap

For the October-December period, Sun Pharmaceutical Industries' consolidated net profit grew 16.5 per cent to Rs 2,523.8 crore while its revenue expanded 10.1 per cent to Rs 12,380.7 crore, according to a regulatory filing. The results exceeded analysts' expectations. 

Zee Business analysts had pegged Sun Pharma's Decmeber-quarter net profit at Rs 2400 crore and revenue at Rs 12,303 crore. Read more on Sun Pharma's Q3 earnings

Sun Pharma Shares: Past performance 

As of May 18, Sun Pharma shares have grown 66 per cent in a year, outperforming gains of 23 per cent and 57 per cent in the Nifty50 and Nifty Pharma gauges, respectively.

In 2024 so far, the pharma stock is up 23.5 per cent, better than gains of 3.7 per cent and 14 per cent in the Nifty50 and Nifty Pharma indices, respectively.

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