Sun Pharma Q3 net profit, revenue exceed market estimates

Sun Pharmaceutical Industries Ltd, India’s biggest drugmaker, exceeded market estimates for the third quarter with its net profit and revenue coming ahead of expectations.

Consolidated net profit for the quarter ended December 31, 2021, grew 11% from a year earlier to Rs 2,059 crore.

Consolidated sales from operations also grew 11% from a year earlier to Rs 9,814.2 crore.

Analysts had predicted a drop in net profit to around Rs 1,700-1750 crore and revenue of around 9,500-9,600 crore.

The company’s board also declared an interim dividend of Rs 7 per share for 2021-22, up from Rs 5.50 per share interim dividend for the previous year.

The company also said it repaid debt of about US$254 million during the nine-month period ended Dec. 31, 2021.

Other key highlights

1) India formulation sales in Q3 at Rs 3,167.6 crore, up 15% over same quarter last year.

2) US formulation sales at US$397 million, growth of 6% over Q3 last year.

3) Emerging markets formulation sales at US$239 million, up by 17% over Q3 last year.

4) Rest of World formulation sales at US$181 million, up by 3% over same quarter last year.

5) R&D investments at Rs 547 crore versus Rs 559.5 crore for Q3FY21.

6) EBITDA at Rs 2,557.4 crore, up by about 8% over Q3 last year, with EBITDA margin at 26.1%.

7) Nine-month consolidated sales from operations at Rs 29,040.3 crore, growth of 17% over same period last year.

8) Nine-month EBITDA at Rs 7,890 crore, up about 27% from a year earlier, with EBITDA margin at 27.2%.

9) Excluding exceptional items, adjusted net profit for nine months ended Dec. 31 was Rs 6,085 crore, up 33%.

10) Reported net profit for nine-month period at Rs 5,550 crore compared with Rs 2,009.7 crore.

Management commentary

Dilip Shanghvi, Managing Director of Sun Pharma, said the company achieved a sustained momentum and good growth across businesses and achieved higher profitability despite rising costs.

“Our India business continues to grow faster than market, leading to increase in market share. Our global specialty business for the first nine months has already crossed previous full-year revenues,” he said.

“We remain steadfast in our focus on topline growth, operational efficiencies and business continuity while simultaneously continuing to expand our global specialty presence,” he added.