Sun Pharma Q4 Results: Posts Loss On Exceptional Items, Revenue Rises 11%
Sun Pharma reported a consolidated net loss of Rs 2,277 crore in January-March against a net profit of Rs 894 crore a year ago.
Sun Pharmaceutical Industries Ltd. reported a loss in the fourth quarter on account of exceptional items even as sales across key markets rose.
India’s largest drugmaker reported a consolidated net loss of Rs 2,277 crore in January-March quarter against a net profit of Rs 894 crore a year ago, it said in an exchange filing. The consensus estimates of analysts tracked by Bloomberg had pegged the profit at Rs 1,707 crore.
The company charged Rs 3,936 crore toward exceptional items in the reported quarter. These pertain to its U.S. subsidiary Taro Pharmaceutical Industries Inc., settlement of other lawsuits, write-offs and impairments and exceptional tax.
Sun Pharma Q4 FY22 Highlights (YoY)
Revenue rose 11% to Rs 9,447 crore, compared with an estimated Rs 9,576 crore.
Ebitda was up 6% to Rs 2,179 crore, against the Rs 2,544-crore forecast.
Margin stood at 23.1% versus 24.2%. Analysts estimated the metric at 26.6%.
Revenue from India formulations rose 16% to Rs 3,096 crore, accounting for 33% of the total sales.
U.S. formulation sales (including Taro) rose 5% Rs 2,925 crore. It accounted for 31% of the consolidated sales.
Emerging market sales increased 7% to Rs 1,547 crore, while the rest of the world saw a rise of around 7% to Rs 1,341 crore. These two accounted for 17% and 14%, respectively, of the total consolidated sales.
External sales of bulk drugs or active pharmaceutical ingredients stood at Rs 414 crore, down 5%.
The company launched 11 new products in the Indian market during the fourth quarter. Also, approvals for one abbreviated new drug application and one new drug application were received.
Sun Pharma has proposed a final dividend of Rs 3 apiece for the fiscal ended March 2022. The company also declared an interim dividend of Rs 7 apiece, taking the total dividend for FY22 to Rs 10 a share, compared with Rs 7.5 a year ago.
FY22 Highlights (YoY)
Revenue rose 15% to Rs 38,654 crore.
After-tax profits surged 13% to Rs 3,273 crore.
Operating profit rose 21%.
Operating margin stood at 26.5% against 25.3% a year ago.
Earnings per share stood at Rs 13.6 compared with Rs 12.1 in FY21.
Revenue from India formulations rose 23% to Rs 12,753 crore.
U.S. formulation sales (including Taro) rose 12% Rs 11,374 crore.
Emerging markets sales increased 16%, while the Rest of the World saw a rise of 11%.
External sales of bulk drugs or active pharmaceutical ingredients were down 6%.
The company said it would continue to focus on increasing API supplies for captive consumption relating to its key products.
Consolidated R&D investment was at Rs 2,219 crore, which was 5.8% of sales. This was up 3% over the R&D spend in FY21.
The company repaid debt of about $355 million (around Rs 2,500 crore) in FY22.
Sun Pharma’s share in the Indian market, according to AIOCD-AWACS MAT March-2022 report, was at 8.3%—the highest in the country.
According to Managing Director Dilip Shanghvi, “All our geographies have recorded double-digit growth and profitability has improved despite rising costs.” Global Ilumya (severe plaque psoriasis) sales recorded 81% growth to reach $315 million in FY22.
“We continue to focus on expanding our global specialty business, growing all our businesses and on improving operational efficiencies,” he was quoted as saying in the statement.
Shares of Sun Pharma closed 1.65% lower before the results were announced on Monday compared with the benchmark Sensex’s 1.9% gain.