Sun Pharma Q1 results: Net profit rises 40% to Rs 2,836 cr, revenue up 6% | Company Results
Sun Pharma CMD Dilip Shanghvi
India’s largest domestic drug maker, Sun Pharmaceutical Industries, on Thursday reported a 40 per cent year-on-year (Y-o-Y) rise in consolidated net profit for the June quarter of financial year 2024-25 (Q1 FY25) at Rs 2,836 crore, up from Rs 2,026 crore reported for the same period last year. The company’s total revenue from operations stood at Rs 12,653 crore, a 6 per cent Y-o-Y rise from Rs 11,941 crore reported in Q1 FY24.
Sun Pharma stock was down 0.1 per cent in afternoon trade on BSE.
Brokerages had expected the revenue growth to be around 8 per cent and profit growth in the range of 27-30 per cent. The results have thus beaten street estimates.
On a sequential basis, the company exhibited a 6.8 per cent rise in net profit, while its revenue grew by 5.5 per cent, from Rs 2,655 crore and Rs 12,380.7 crore reported in Q3 FY24, respectively.
At the operating level, the earnings before interest, tax, depreciation, and amortisation (Ebitda) rose 8.3 per cent to Rs 3,608 crore in the June quarter, including other revenues. The Ebitda margin improved to 28.5 per cent from 27.9 per cent during the same period last year.
Dilip Shanghvi, chairman and managing director of Sun Pharma, said that the company has recently attained several milestones with the approval of Leqselvi in the US, the filing of Nidlegy in Europe, and the completion of the acquisition of Taro minority shares. “These steps will advance our innovative as well as generic business offerings and will help us serve patients better,” he added.
Sun Pharma’s India formulation sales grew by 16.4 per cent Y-o-Y to Rs 4,144 crore, accounting for about 33.1 per cent of its total consolidated sales. This comes after the company launched six new products in the Indian market during the quarter. The United States (US) formulation sales saw a year-on-year dip of 1 per cent at $466 million, but still accounted for over 31.1 per cent of the company’s total consolidated sales.
The company also reported a 14.7 per cent increase in global specialty sales to $266 million, contributing 17.7 per cent to the total sales. The emerging markets formulation sales rose by 8.8 per cent to $284 million, while formulation market sales for the Rest of the World (RoW) dipped by 2.9 per cent to $190 million.
The company’s research and development investments for the quarter rose to Rs 794 crore, compared to Rs 680 crore for the same period last year.
It also reported that the company had completed its acquisition of all outstanding ordinary shares of Taro Pharmaceutical Industries, other than the shares already held by the group in the June quarter, for a consideration of $347.7 million.
First Published: Aug 01 2024 | 4:05 PM IST
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