Sun Pharma Q3 results: Net profit jumps 11% on-year, beats estimates

Sun Pharma

Profits beat estimates: Sun Pharma has reported a net profit of Rs 2,058.8 crore for the quarter ended December, up 11% YoY. Analysts had estimated a profit of about Rs 1,702.8 crore. In the year-ago period, the company had reported a profit of Rs 1,852.48 crore. 

Revenue rises: Revenue rose 11.61% YoY to Rs 9,863.06 crore in the quarter ended December beating the analysts’ forecast of Rs 9,628.8 crore. Sequentially, the revenue increased from Rs 9,625.93 crore.

Margins expand: The company's EBITDA for the Oct-Dec quarter came in at Rs 2,616.9 crore, up by 12% compared to the year-ago period. Analysts’ had projected the EBITDA levels to Rs 2,512.3 crore. Margins for the same quarter expanded to 26.5% from 20.53% in the last quarter. 

Sun Pharma Q3 results: Highlights

Dividend: The company declared an interim dividend of Rs 7 per share for FY22. The record date is February 10. The payment of the interim dividend would be made to the eligible shareholders on or before February 22, 2022,

Formulation sale: Sales of branded formulations in India for the Oct-Dec quarter were at Rs 3,167.6 crore, up by 15% over Q3 of last year, and accounting for 32% of total sales. The company's formulations sales in the US including Taro were at $397 million, a growth of 6% over the third quarter of last year and accounting for about 30% of total consolidated sales. The company's sales in Emerging Markets were at $239 million for the quarter under consideration and a growth of 17% over the third quarter of last year. Overall sales in Emerging Markets accounted for about 18% of total consolidated sales for the quarter. Formulation sales in the Rest of the World (ROW) markets were at $181 million up by 3% and accounted for approximately 14% of total consolidated sales.

Spend on R&D: Consolidated R&D investment for Q3FY22 was Rs 547.1 crore as compared to Rs 559.5 crore for Q3 last year. They have a comprehensive product offering in the US market consisting of approved ANDAs for 512 products while filings for 88 ANDAs await US FDA approval, including 26 tentative approvals. For the quarter, 4 ANDA approvals were received.

Sun Pharma Q3 results Review

Sun Pharma reported strong results of the Oct-Dec quarter due to all-around growth across all businesses despite rising costs. During the quarter, Sun Pharma's external sales of API were at Rs 471 crore, higher by about 5% over Q3FY21. The APIs business imparts benefits of vertical integration and continuity of supply chain for their formulations business. The company continues to focus on increasing API supplies for captive consumption relating to its key products. The company has repaid debt of about $254 million in 9MFY22 compared to the debt as of March 31, 2021. The  share price of Sun Pharma closed 0.80% higher at Rs 834 on Monday afternoon post the result.