Sun Pharma Q1 Results: Profit Surges 43% On A Low Base
Sun Pharma's Q1 profit surged beating estimates on a low base.
Sun Pharmaceutical Industries Ltd.'s profit surged in the first quarter, beating estimates.
India’s largest drugmaker reported a consolidated net profit of Rs 2,061 crore in the April-June quarter, up 43% over a year earlier, according to its exchange filing. That compares with the Rs 1,750-crore consensus estimates of analysts tracked by Bloomberg.
The company had reported an exceptional loss in the base quarter. Profit before exceptional items and tax is 6% lower than the first quarter a year earlier.
Sun Pharma Q1 FY23 Highlights (YoY)
Revenue rose 11% to Rs 10,762 crore, compared with an estimate Rs 10,267 crore.
Ebitda flat at Rs 2,739 crore, against the Rs 2,705-crore forecast.
Margin stood at 25.4% versus 28.2%. Analysts had estimated 26.3%.
Other Highlights (YoY)
Revenue from India formulations or finished drugs rose 13%, excluding Covid products sales of Q1 last year. It rose 2% on an overall basis to Rs 3,387 crore, accounting for 32% of the total sales.
U.S. formulation sales, including Taro, rose 11% to Rs 3,244 crore, accounting for 30% of the consolidated sales.
Emerging market sales increased 13% to Rs 1,891 crore, while the rest of the world saw a rise of around 2.6% to Rs 1,468 crore. These two account for 18% and 14%, respectively, of the total consolidated sales.
External sales of bulk drugs or active pharmaceutical ingredients stood at Rs 599 crore, up 16%.
Consolidated R&D investment was at Rs 461 crore, down 22% over Q1FY22. It accounts for 4% of sales.
The company launched 22 new products in the Indian market during the quarter. Also, approvals for three abbreviated new drug applications were received.
Sun Pharma’s share in the Indian market, according to AIOCD-AWACS MAT June-2022 report, was at 8.5%—the highest in the country.
According to managing director Dilip Shanghvi, all their businesses recorded good growth, "driven by a combination of sustained scale-up for our specialty business and all-round growth across markets" in Q1.
Specialty business, he said in the filing, has grown by 29% driven by Ilumya, Cequa, Odomzo and Winlevi. Their India business continued to grow faster than market, leading to increase in market share.
"We have been able to report healthy margins despite rising costs," said Shanghvi. "We continue to focus on expanding our global specialty business, growing all our businesses and improving our market share.”
Shares of Sun Pharma were trading 5.39% higher post results were announced on Friday compared with the benchmark Sensex’s 0.92% gain at 2:02 p.m.