Sun Pharma Q1 Results: Net profit jumps 40% on-year to Rs 2,836 crore, beats estimates

Sun Pharma Q1 results declared

Sun Pharmaceutical Industries reported on 1 August its Q1 FY25 net profit rose 40 percent on-year to Rs 2,836 crore from Rs 2,023 crore in the corresponding quarter previous year, beating Street expectations. The drugmaker's April-June quarter revenue rose 6 percent to Rs 12,653 crore from Rs 11,941 crore a year ago.

On an adjusted base, the drugmaker's first quarter net profit was up about 21 percent year-on-year. During the previous year's first quarter, "the Group completed the acquisition of 60 percent shareholding in Vivaldis Health and Foods Pvt Ltd for a consideration of Rs 143 crore... Accordingly, the results for the quarter ended June 30, 2023 are not comparable with other periods presented," Sun Pharma said in the notes to the financial statement.

A Moneycontrol poll of 13 brokerage estimates pegged Sun Pharma's fiscal first quarter net profit at Rs 2,579 crore and revenue at Rs 12,904 crore, aided by strong sales in the US market backed by cancer drug Revlimid, and in domestic market driven by chronic therapies.

Sun Pharma's India formulation sales grew by 16.4 percent to Rs 4,144 crore, accounting for about 33.1 percent of total consolidated sales. The company launched six new products in the Indian market during the quarter. US formulation sales were slightly lower at $466 million, down 1 percent year-on-year, but still accounted for over 31.1 percent of total consolidated sales.

Global specialty sales increased by 14.7 percent to $266 million, contributing 17.7 percent to the total sales. Emerging markets formulation sales rose by 8.8 percent to $284 million, while rest of world formulation sales were down by 2.9 percent to $190 million.

Research and development investments for the quarter rose to Rs 794 crore, compared to Rs 680 crore in Q1 FY24. Sun Pharma reported that the EBITDA for the April-June quarter rose 8.3 percent on-year to Rs 3,608 crore, including other operating revenues. The EBITDA margin improved to 28.5 percent from 27.9 percent during the same period last year.

Dilip Shanghvi, Chairman and Managing Director of Sun Pharma, said, "Sun 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 advance our innovative as well as generic business offerings, and will help us serve patients better."