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Sun Pharma Q2 result today: Key expectations from July-September earnings

BusinessToday.In     November 7, 2019

Sun Pharmaceutical Industries will announce its July-September (Q2) earnings for FY20 on Thursday. The pharmaceutical company is likely to see nearly 15-17% rise in its revenues. The margins are expected to be around 21% as against 22% in the same quarter last year.

Sun Pharma may also report a profit of around Rs 1,100 crore which is likely to be supported by a low base, reported CNBCTV18.

Whereas, according to brokerage house Emkay's earnings estimates, the pharmaceuticals giant is expected to report a net profit of Rs 1,114.8 crore up 12% year-on-year and down 20% quarter-on-quarter (QoQ).

Also Read: Sun Pharma share price rises over 1% ahead of Q2 earnings

The net sales are likely to increase by 15.2% y-o-y (down 4.6% Q-o-Q) to Rs 7,988.9 crore. Emkay also expects the company to clock a rise in its earnings before interest, tax, depreciation and amortisation (EBITDA) by 2% Y-o-Y (down 22% Q-o-Q) to Rs 1,557.8 crore.

The pharma company's research and development (R&D) spend is going to be followed closely as it has been investing in its specialty portfolio. The other key things to watch out for are Sun Pharma management's commentary on specialty portfolio, US markets, overall guidance, plans of China entry subsequent to the company's deal with Astrazeneca and its update on the Securities and Exchange Board of India's (SEBI) investigation.

Also Read: Sun Pharma, AstraZeneca shares rise up to 5% on agreement for sale of cancer drugs in China

In August, the drug major had reported a 31.22 per cent year-on-year (YoY) rise in consolidated net profit at Rs 1,387.48 crore for the first quarter ended June 30, 2019. The company had reported a 27.20 per cent growth in consolidated net profit at Rs 2,665.42 crore in FY19 as compared to Rs 2,095.70 crore in the last fiscal.

Sun Pharma's share price was trading higher ahead of the firm's Q2 earnings. The pharma stock gained 1.06% to Rs 432.10 compared to the previous close of Rs 427.55 on BSE.

Also Read: Sun Pharma Advanced Research Company loss windes to Rs 63 crore in September quarter

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