India’s largest Pharmaceuticals company Sun Pharma Ltd. reported its September quarter results on Friday, October 30, which were higher in comparison with analyst expectations. The stock gained as much as 3.5% in response to the results.
Revenue for the quarter stood at ₹16,198.7 crore. A CNBC-TV18 poll had projected the figure to be ₹15,766.1 crore. On a year-on-year basis, Sun Pharma’s topline grew by 12%.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹4,743 crore, higher than the CNBC-TV18 poll estimate of ₹4,403 crore. The company had reported an EBITDA of ₹4,527 crore during the September quarter last year.
EBITDA margin for the quarter stood at 29.3% compared to 31.3% last year. The figure was also higher than the CNBC-TV18 poll of 27.9%.
Sales in the US market stood at $455 million, compared to $496 million last year and $427 million in the June quarter. The CNBC-TV18 poll had pegged that figure to be $455 million. Growth in the US market was led by healthy trends in the innovative medicines segment.
Sun Pharma reported a net profit of ₹1,988.5 crore, which is lower than the CNBC-TV18 poll estimate of ₹3,085 crore and 36% lower than the same quarter last year. However, the profit figure is lower due to an exceptional loss of ₹1,270 crore that the company incurred during the current quarter.
The exceptional loss during the quarter pertains to various factors, including the legal fees, commitment fees, acquisition related fees for Organon and other additional acquisition-related costs, which the management expects to incur in subsequent periods as well.
US sales accounted for nearly 27% of Sun Pharma’s consolidated topline during the quarter. On a year-on-year basis, US sales declined by 8.2% from last year.
Emerging Market formulation sales stood at $350 million, growing by 7.6% from last year, and accounted for 20.7% of the total consolidated sales. Rest of the World (RoW) sales stood at $241 million, growing by 3.1% and accounted for 14.3% of the consolidated sales for the quarter.
Global innovative medicines sales were at $356 million, up 6.9% from last year, and accounted for 21.1% of the total sales. API sales grew by 13.7% year-on-year to ₹488.9 crore.
Shares of Sun Pharma are trading 3.3% higher after the results announcement at ₹1,820.
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