Sun Pharma Q2 Results: Net Profit Jumps 70% Aided By Other Income, Lower Expenses
Net profit of India’s largest drugmaker rose 70% year-on-year to Rs 1,813 crore in the three months ended Sept. 30.
Sun Pharmaceutical Industries Ltd.’s quarterly profit rose on the back of lower operating expenses and higher other income.
Net profit rose 70% year-on-year to Rs 1,813 crore in the three months ended September, India’s largest drugmaker said in an exchange filing. That compares with the Rs 1,124-crore consensus estimate of analysts tracked by Bloomberg. The company had reported a net loss of Rs 1,656 crore in the preceding quarter.
Other expenses declined 3% to Rs 2,392 crore and other income rose by 28% to Rs 256 crore, aiding profitability.
Revenue rose 5% over a year earlier to Rs 8,553 crore, compared with the estimated Rs 8,302 crore. That’s also a 13% rise over the April-June quarter.
Sun Pharma’s operating profit rose 30% to Rs 2,310 crore, against the Rs 1,861-crore forecast.
Margin improved to 27% over the year earlier 22%.
Sales and gross profit of Taro Pharmaceutical Industries Ltd., its U.S. subsidiary, dropped 25.7% and 16.3% year-on-year to $142.8 million and $81.6 million, respectively, in the quarter ended September, according to a separate statement. The earnings and sales of Taro, however, improved over the preceding three months.
The U.S. business accounts for more than 30% of Sun Pharma’s overall consolidated sales. Taro Pharma contributes nearly half of the parent’s total U.S. formulation sales
Revenue from India business grew 1% to Rs 2,531 crore.
U.S.-finished dosage sales remained flat compared with a year earlier at $335 million; grew 19% compared with Q1FY21.
Emerging market sales rose 4.5% to $210 million.
Rest of the world sales at $178 million, up 10%.
API business grew 9% to Rs 510 crore
Shares of Sun Pharma rose 4%, the highest in at least five days, after the results were announced compared with a 1% gain in the Nifty 50 Index.