Last updated: 02 Nov, 2021 | 03:11 pm
Profits above estimates: Sun Pharma has reported a net profit of Rs 2,047 crore for the quarter ended Sep, up 42% sequentially. Analysts had estimated a profit of about Rs 1,704 crore. In the year-ago period, the company had reported a net profit of Rs 1,813 crore. The strong numbers were the outcome of a low base.
Revenue rises: Revenue fell 1% sequentially to Rs 9,626 crore in the quarter ended Sep, beating the analysts’ forecast of Rs 9461.6 crore. On a yearly basis the revenue rose by 12.5% from Rs 8,553 crore in the same quarter last year.
Margins expand: The operating performance was good and higher than expectations. EBITDA grew by 19.9% on-year to Rs 2,630 crore than Rs 2,219.7 estimated by the analysts. Margin expanded by 170 bps to 27.3% in the quarter ended Sep, beating estimates of 24.7%.
Sun Pharma Q2: Important highlights
Formulation sale: Sales of branded formulations in India for the Jul-Sep quarter were at Rs 3,187.8 crore, up by 26% over Q2 of last year, and accounting for 33% of total sales. The company's formulations sales in the US were at Rs 2,677 crore, a growth of 7.5% over the year ago quarter and accounting for about 28% of total sales. The company's sales in Emerging Markets were at Rs 1,800.5 crore for the Sep quarter, growing at 15.5% on year. Overall sales in Emerging Markets accounted for about 19% of total sales for the quarter. Formulation sales in Rest of World (ROW) markets were at Rs 1,392.6 crore up by 4.2% and accounted for approximately 15% of total sales.
Sun Pharma Q2 results Review:
Sun Pharma reported strong results for the Jul-Sep quarter due to a lower base of last year. During the quarter, Sun Pharma spent Rs 536.4 crore on research and development. The reduction is due to spill-over of certain clinical studies into subsequent quarters. The company remains steadfast in its focus on growing overall business and simultaneously strengthening the global specialty portfolio. The recent launch of Winlevi (acne) in the U.S. and Ilumya (psoriasis) in Canada is a step forward in this direction.
Sun Pharma is ranked No.1 and has increased its market share to 8.1% in the Indian pharmaceutical market as per AIOCD AWACS MAT September-2021 report. For Jul-Sep quarter, the company launched 28 new products in the Indian market. Shares of Sun Pharma had surged around 3% after the results were announced but pared most of the gains to close 0.15% higher.