Sun Pharma Q3 Results: Profit Rises In Line With Estimates
Sun Pharma reported a consolidated net profit of Rs 2,166 crore in the October–December quarter, up 5% from a year earlier.
Sun Pharmaceutical Industries Ltd.'s third-quarter profit rose in line with estimates.
India's largest drugmaker reported a consolidated net profit of Rs 2,166 crore in the October–December quarter, up 5% from a year earlier, according to its exchange filing. That compares to the Rs 2,082-crore consensus estimate of analysts tracked by Bloomberg.
Sun Pharma Q3 FY23 Highlights (YoY)
Revenue rose 14% to Rs 11,241 crore, compared with an estimate of Rs 11,101 crore.
Ebitda was up 15% at Rs 3,007 crore against the Rs 2,945 crore forecast.
The margin stood at 26.7% versus 26.5%. Analysts had estimated it at 26.5%.
The board of directors approved an interim dividend of Rs 7.50 per share during their meeting on Jan. 31.
Other Highlights (YoY)
Revenue from India formulations, or finished drugs, rose 7% to Rs 3,392 crore, accounting for 31% of total sales.
U.S. formulation sales, including Taro, rose 6% to Rs 3,466 crore ($422 million), accounting for 31% of consolidated sales.
Emerging market sales increased 8% to Rs 2,116 crore ($257 million), while the rest-of-the-world sales fell around 5% to Rs 1,556 crore ($189 million). These two account for 19% and 14%, respectively, of total consolidated sales.
External sales of bulk drugs, or active pharmaceutical ingredients, stood at Rs 515 crore, up 9%.
Consolidated R&D investment was at Rs 670 crore, up 22% over Q3 FY22.
The company launched 25 new products in the domestic market during the quarter.
It filed four abbreviated new drug applications during the quarter.
Sun Pharma's share in the Indian market, according to the AIOCD-AWACS MAT December 2022 report, was at 8.5%, up 30 basis points—the highest in the country.
"Specialty is expected to continue as a key growth driver for Sun. We are investing to scale up this business, especially in our core therapy areas," said Sun Pharma's managing director Dilip Shanghvi, in the exchange filing.
The company had also announced the acquisition of Concert Pharmaceuticals Inc. in January 2023.
"Concert’s lead asset, deuroxolitinib, has a potential best-in-class profile in Alopecia Areata, an area of dermatology with high unmet need. We are excited to offer this new treatment option to dermatologists worldwide. Given our commercial strength, we would be well-positioned to bring this product to market," Shanghvi said.
Shares of Sun Pharma were trading 1.18% lower after the results were announced on Tuesday, compared with a 0.13% decline in the benchmark Sensex at 2:49 p.m.