Sun Pharmaceutical Industries Limited on July 29 reported a 43 percent growth in its consolidated net profit at Rs 2,061 crore in the first quarter of the financial year 2022-23 against a profit of Rs 1,444 crore in the year-ago period.
The profit for the year-ago quarter had exceptional charges of Rs 631 crore towards the settlement of a lawsuit related to the company's subsidiary in the US and impairment charges. Adjusting for the exceptional items, the PAT for the quarter would have been higher at Rs 2,075 crore.
On a sequential basis, the profit increased from a loss of Rs 2,277 crore in the January-March period. During the previous quarter, the loss was due to an exceptional expense of Rs 3,936 crore towards the settlement of a lawsuit in the US related to subsidiary Taro Pharmaceuticals, impairment of assets, a one-time charge of restructuring of operations in certain countries, etc. Adjusting for this expense, the company was in a profit of Rs 1,659 crore.
“For Q1, all our businesses recorded good growth, driven by a combination of sustained scale-up for our specialty business and all-around growth across markets," managing director Dilip Sanghvi said.
The pharmaceutical major's consolidated revenue rose 10.7 percent on-year to Rs 10,762 crore from Rs 9,719 crore in the year-ago quarter. On a sequential basis, the revenue was 14 higher from Rs 9,447 crore.
Excluding the COVID-related sales during the year-ago quarter, the growth in sales was 14 percent on year.
“Specialty business has grown by 29 percent driven by Ilumya, Cequa, Odomzo and Winlevi and our India business continues to grow faster than the market, leading to an increase in the market share," Sanghvi said.
Ilumaya is used in the treatment of plaque psoriasis, a skin condition, while
Cequa is for treating dry eye. Odomzo is a skin cancer drug and Winlevi is for acne.
The company reported healthy margins despite rising costs, as it continued to focus on expanding its global specialty business and improving its market share, he added.
India formulation sales at Rs 3,387 crore were up 13 percent on like-to-like basis, excluding Covid products sales during the first quarter of the previous fiscal. On reported basis (including Covid product sales), the growth is 2.4 percent over the year-ago period
US formulation sales at $ 420 million grew 10.7 percent over the year-ago quarter, while the Emerging Markets formulation sales at $ 245 million were up 12.6 percent from the year-ago quarter.
"Rest of World" recorded formulation sales of $ 190 million, up 2.6 percent over the same quarter last year.
The company saw a lower other income of Rs 2.1 crore during the quarter, much lower than Rs 152.5 crore during the corresponding period of the last year and Rs 113.5 crore in the previous quarter.
The company's cost of raw materials consumed, other expenses as well as employee costs as a percentage of revenue increased by 2.5 percent, 1.9 percent and 1.2 percent, respectively, from the Q1FY22.
Sequentially, however, there was a decline of 4.6 percent in the cost of raw materials and a 1.8 percent drop in other expenses. The employee cost was 0.7 percent lower in the June quarter.
The company achieved an EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 2,884 crore, with an EBITDA margin of 26.8 percent.
At 2:28 pm, Sun Pharma was trading Rs 43 higher at Rs 937.35 on the National Stock Exchange. It has generated returns of 33 percent in the past year and 12 percent in the past month.
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