Last updated: 29 Jan, 2021 | 10:46 am
Earnings beat estimates: Sun Pharma has reported a net profit of ₹1,852 crore in Q3FY21, up 102.8% on-year. Analysts had estimated a profit of about ₹1,350 crore. The numbers were aided by a steep rise in other income to ₹315 crore from ₹120 crore in the year-ago period.
Revenue rises: Revenue rose 8% on-year to Rs 8,836.7 crore, against the analysts’ forecast of Rs 8,775.3 crore. Sale of branded formulations in India for Q3FY21 were at Rs. 2,753 crores, up by 9.4% on-year, accounting for 31% of total sales. Sun Pharma remains the market leader in India with a market share of 8.2%. Sales in the US (including Taro) were US$ 374 million, up 7% over Q3 last year, accounting for about 31% of total consolidated sales.
Margins expand: Operating profit rose 31% to Rs 2,406 crore, compared with the projected Rs 2,190.4 crore. Margins expanded to 27.2% from 22.6%.
US subsidiary Taro underperforms: Sun Pharma’s U.S. subsidiary Taro’s sales declined 5% on-year to $140.1 million. Its gross profit fell 22% year-on-year to $73.2 million. For 9MFY21, Taro’s reported net loss stood at $357 million.
Interim dividend: Sun Pharma has announced an interim dividend of ₹5.5 per share. The record date is fixed as 10th February 2021. The payment of the interim dividend would be made to the eligible shareholders on or before February 19, 2021.
Sun Pharma has reported a good set of numbers for Q3FY21, offsetting the underperformance of its subsidiary. The numbers were aided by a healthy rise in sales across geographies. The company’s global specialty sales have continued to show an improving trend and have crossed pre-Covid levels. Sun Pharma shares closed nearly 4% higher at ₹586.20 on NSE.