Sun Pharma Q2 PAT rises 10.5% YoY to Rs 2,262 crore on robust sales

Gross sales came in at Rs 10,809.2 crore, growing by 13.1% over Q2 last year

Mumbai-headquartered Sun Pharmaceutical Industries has posted a 10.5 per cent year-on-year (YoY) rise in net profit for the second quarter of the current fiscal, riding on a 13.1 per cent rise in gross revenues.

Gross sales came in at Rs 10,809.2 crore, growing by 13.1 per cent over Q2 last year, while the net profit for the quarter was at Rs 2262.2 crore, up by 10.5 per cent YoY, impacted by lower other income.

Sun Pharma shares were up 1.68 per cent on the BSE at 3:00 p.m. in the afternoon, at Rs 1,033 each.

US formulation sales came in at $412 million, up 14.1 per cent over Q2 last year. The global specialty sales crossed $200 million, growing at 27.5 per cent over Q2 last year.

The company said that footfalls in clinics in the US have come back to pre-Covid levels. However, pricing pressure on the generic business continues. 

Dilip Shanghvi, Managing Director, Sun Pharma said, “For Q2, we recorded double-digit topline growth and strong margins driven by market share gain in India, sustained ramp-up of our global specialty business and growth in emerging markets. Global specialty business has grown by 27.5 per cent driven by Ilumya, Cequa and Winlevi. We continue to focus on expanding our global specialty business and growing all our businesses.”

Shanghvi said that spend on R&D will gain momentum in the coming quarters both for specialty products and generic business. At the moment specialty R&D is around 22 percent of the overall R&D budget 

For the first half of the year, gross sales came in at Rs 214 53.2 crore, growth of 11.6 per cent over the same period last year. Net profit for H1FY23 was at Rs 4,323.1 crore, up 23.8 per cent YoY. Excluding the exceptional items of H1 last year, adjusted net profit was up by 7.4 per cent.

The India formulation sales for the quarter were at Rs 3,460 crore, up 8.5 per cent YoY. India sales accounted for 32 per cent of the total consolidated sales of Sun Pharma. The company’s market share in the Indian market has risen 0.5 per cent to 8.6 per cent over the past one year, according to AWACS data. For Q2FY23, the company launched 34 new products in the Indian market.

Emerging market formulation sales came in at $259 million, up 6.7 per cent YoY. Rest-of-World formulation sales at $181 million, lower by about 3.8 per cent over Q2 last year, impacted by adverse currency movements.

Taro posted Q2FY23 sales of $130 million, marginally lower over Q2 last year, and a loss of $2.8 million. For Q2FY23, external sales of API were at Rs 473 crore, up 8.5 per cent over Q2 last year.

“Our API business imparts benefits of vertical integration and continuity of supply chain for our formulations business. We continue to focus on increasing API supply for captive consumption for key products,” it said.

Consolidated R&D investment for Q2FY23 was Rs 571 crore as compared to Rs 536.4 crore for Q2 last year. For the first half, R&D expense was Rs 1,031.8 crore, or 4.8 per cent of sales.

“Our R&D efforts span across both specialty and generic businesses and we continue to invest in building the pipeline for various markets including the US, Emerging Markets, RoW Markets and for India,” the company said.

It said that its specialty R&D pipeline includes 4 molecules undergoing clinical trials.

“We have a comprehensive product offering in the US market consisting of approved ANDAs for 517 products while filings for 92 ANDAs await US FDA approval including 28 tentative approvals. For the quarter, two approvals were received. Additionally, the portfolio includes 54 approved NDAs while 13 NDAs await US FDA approval,” Sun Pharma added.