Sun Pharma Q4 results: Revenue, Profit, Provisions, Dividend and more

Last updated: 28 May, 2021 | 03:10 am

Sun Pharma Q4 results: Revenue, Profit, Provisions, Dividend and more

Earnings below estimates: Sun Pharma has reported a net profit of ₹894.15 crore in Jan-Mar 21, down 52% on-year. Analysts had estimated a profit of about ₹1,375 crore. The numbers were impacted due to losses reported by the company’s US arm.Further, the company has taken an exceptional hit relating to provisions amounting to Rs 672.8 crore.

Revenue misses: Revenue declined 4% on-year to Rs 8,523 crore, against the analysts’ forecast of Rs 88,716 crore.The revenue was impacted on the back of low growth in the US,  because of the non-recurring medicine sales a year ago and the seasonality effect in the quarter. Sale of branded formulations in India for Q4FY21 were at Rs. 2,670 crores, up by 13% 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$ 370 million, down 9% over Q4 last year, accounting for about 32% of total consolidated sales. 

US subsidiary Taro underperforms: Sun Pharma’s U.S. subsidiary Taro’s sales declined 15% on-year to $148 million. Taro’s reported net loss for Q4FY21 was US$ 29.8 million, dragging down the overall consolidated net profit of the company during the period. 

Interim dividend: Sun Pharma has announced a dividend of Rs 2 per share for FY21. 

Sun Pharma has reported a disappointing set of numbers for Q4FY21, dragged by poor show in its US business. The India business continues to outperform. The bottomline was impacted by provisions worth Rs 672 crore.Going forward, the company is set to get its performance back on track as it has been gradually resolving its pending legal settlements and corporate governance concerns. The management has also alluded to considering biosimilars as a serious opportunity over the next 4-5 years. Pharma stocks can continue to be good defensive bets in these turbulent times.

Finzoom Investment Advisors Private Limited (Brand Name - INDmoney, INDwealth, IND.app, IND.money, INDsave.com) makes no warranties or representations, express or implied, on products and services offered through the platform. It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services.

Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Marketing and distribution of various financial products such as loans and deposits are powered by Finzoomers Services Private Limited.

INDmoney, INDwealth, IND.app are brand and product of Finzoom Investment Advisors (P) Limited.

© Finzoom Investment Advisors Private Limited

[SEBI RIA Registration No: INA100012190] [Type of Registration: Non-Individual] [Validity of registration: December 17, 2018-Perpetual] [Address: 616, 6th Floor, Suncity Success Tower, Golf Course Extension Road, Sector – 65, Gurugram, Haryana- 122005] [Principal Officer details: Mr. Gaurav Sharma, Email id: principalofficer@indwealth.in, Contact No. 8800826254] [Corresponding SEBI local office address: Securities and Exchange Board of India, Local Office, First Floor, SCO 127-128, Sector 17C, Chandigarh-160017]

[ARN - 151913] [Platform Partner : BSE (Member code-24801)] [CIN - U67190HR2018PTC073294] [GST No : 06AADCF3538Q1Z8]