Sun Pharma Q3 Results: Profit Jumps 16.5%, Beats Estimates
Sun Pharmaceutical Industries reported a robust 16.5% year-on-year rise in net profit for the December 2023 quarter, surpassing market expectations. The drugmaker’s profit climbed to ₹2,524 crore, driven by strong growth across its key markets.
Key Takeaways
- Net Profit: ₹2,524 crore, up 16.5% YoY.
- Revenue: ₹12,381 crore, up 9.9% YoY.
- Ebitda Margin: Expanded to 26.4% from 25% a year ago.
- Performance: Beat analyst estimates on both profit and revenue.
Financial Highlights
Revenue from operations increased to ₹12,381 crore in Q3 FY24, compared to ₹11,263 crore in the same period last year. This performance exceeded the Street’s revenue estimate of ₹11,900 crore. The company’s profit also beat the estimated ₹2,200 crore.
Earnings before interest, taxes, depreciation, and amortization (Ebitda) grew 16.3% to ₹3,273 crore. The improved operational efficiency is reflected in the Ebitda margin expansion to 26.4%.
Geographical Sales Performance
The company saw balanced growth across its global businesses:
- India Formulations: Sales rose 10.4% to ₹3,712 crore, contributing 30% of total sales.
- US Formulations: Sales increased 11.3% to $492 million.
- Emerging Markets: Sales grew 4.5% to $269 million.
- Rest of World: Sales were up 10.5% to $214 million.
Management Commentary
“We have delivered another quarter of steady performance, driven by balanced growth across all our businesses. Our focus on strengthening our core businesses, global specialty portfolio and pipeline continues,” said Dilip Shanghvi, managing director of Sun Pharma.
Shanghvi highlighted the steady growth of the global specialty business, which now contributes about 17% to total sales. He noted that key specialty products Ilumya and Winlevi are performing well.
“We continue to invest in R&D and are progressing with our plans to file 8-10 ANDAs (abbreviated new drug applications) and 2-3 NDAs (new drug applications) in FY24,” he added.
On the trading front, Sun Pharma shares closed 0.6% lower at ₹1,425.85 on the BSE on Tuesday, the day of the results announcement.
