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Last Updated : Aug 13, 2019 06:03 PM IST | Source: Moneycontrol.com

Sun Pharma Q1 beats estimates, profit jumps 31% driven by India, US biz

Profit increased to Rs 1,387.5 crore in Q1, from Rs 1,057.3 crore in same period last year.

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Healthcare major Sun Pharmaceutical Industries' June quarter earnings beat analyst expectations on all parameters on August 13, with profit growing more than 31 percent on growth in India and US businesses.

Profit increased to Rs 1,387.5 crore in Q1, from Rs 1,057.3 crore in same period last year. Sequentially, profit grew 118 percent in Q1.

Revenue from operations during the quarter jumped nearly 16 percent to Rs 8,374.4 crore compared to previous year, Sun Pharma said in its BSE filing.

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"Numbers are better than our estimates. Even excluding Taro business, numbers are extremely good and well ahead of expectations. Growth drivers for revenue were India, US and Rest of World. Margin is 290bps above our expectations supported by India business and lower other expenses," Krishnanath Munde, Pharma Analyst at Reliance Securities told CNBC-TV18.

India formulations business registered a 8 percent year-on-year growth and US formulations business 12 percent rise in Q1 while emerging markets business revenue was flat and Rest Of The World business grew by 56 percent compared to year-ago.

At operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) grew 24.2 percent year-on-year to Rs 1,996 crore and margin expanded 160bps YoY to 23.8 percent in Q1.

Profit was estimated at Rs 1,052.6 crore on revenue at Rs 8,177.6 crore and EBITDA was expected at Rs 1,743 crore with margin at 21.3 percent for the quarter, according to a poll of analysts conducted by CNBC-TV18.

Sun Pharma reported gains on forex transactions at Rs 67.4 crore for June quarter against loss of Rs 90 crore in previous year. Finance cost declined 20.5 percent year-on-year and 30.6 percent to Rs 104 crore in Q1.

The stock was quoting at Rs 443.55, up Rs 21.65, or 5.13 percent on the BSE at 1512 hours IST.

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First Published on Aug 13, 2019 03:43 pm
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