Sun Pharma Q1 Results: Profits Surges 62% On Domestic Growth
Sun Pharma's Q1 profit surged in line with estimates, aided by domestic formulations business.
Sun Pharmaceutical Industries Ltd.’s first-quarter profit rose sequentially in line with estimates, aided by domestic demand.
India's largest drugmaker reported a consolidated net profit of Rs 1,444.2 crore in the three months ended June, up 62% over the preceding quarter, according to the company's exchange filing. That compares with the Rs 1,412.8-crore profit estimate of analysts tracked by Bloomberg. The company had reported a net loss of Rs 1,655.6 crore a year earlier.
Revenue rose 14% sequentially to Rs 9,718.7 crore. Analysts expected Rs 8,793.4 crore.
Ebidta rose 33% to Rs 2,741.2 crore against the estimated Rs 2,114.1 crore.
Margin rose to 28.2% from 24.2% in the preceding quarter compared with the estimate of 24%.
A "strong Q1" was driven by a combination of robust core business growth, low base and some sale of Covid products, Dilip Shanghvi, managing director at Sun Pharma, said in the earnings statement. India business continues to do well while global specialty revenues have grown over the preceding quarter, he said, adding that Ilumya's (psoriasis drug) performance improved on an annual basis and sequentially.
Other Highlights
Revenue from India formulations rose 24% sequentially and 39% year-on-year to Rs 3,308.4 crore, accounting for 34% of the total sales.
The company launched 13 new products in the Indian market in April-June.
U.S. formulation sales (including Taro) rose 3% sequentially and 35% over a year earlier to Rs 2,800 crore. It accounted for 29% of the consolidated sales.
Emerging markets sales increased 15% sequentially to Rs 1,605.3 crore, while rest of the world saw an increase of 12% to Rs 1,368 crore. Sales also rose year-on-year for both markets.
Bulk drugs sales stood at Rs 514.9 crore, up 18% sequentially but 7% lower year-on-year.
Consolidated R&D investment was Rs 592.6 crore, up 6% sequentially.
Sun Pharma repaid a debt of about $185 million (about Rs 1,364.4 crore) in the first quarter of FY22.
“We continue to focus on growing our overall business and simultaneously strengthening our global specialty portfolio," Shanghvi said. The recent in-licensing of Winlevi for U.S. and Canada is a step forward in this direction.”
Shares of Sun Pharma surged after the earnings to close 10% higher, the biggest jump in almost 16 months, on Friday compared with an almost unchanged S&P BSE Sensex.