 "Sun Pharma rallies 9%, hits over 4-year high on strong June quarter results")
Shares of Sun Pharmaceuticals Industries hit an over four-year high as they rallied 9 per cent to Rs 767.50 on the BSE in intra-day trade on Friday after the company reported strong results for the June quarter (Q1FY22), with adjusted net profit up 73 per cent year-on-year (YoY) at Rs 1,979 crore, mainly due to robust operational performance. The reported net profit for Q1FY22 was at Rs 1,444 crore.
The stock of the drugmaker was trading at its highest level since October 2016. It recorded its sharpest intra-day rally in the past 15 months. Earlier, on April 7, 2020, it had zoomed 11.6 per cent in intra-day trade on the BSE, data shows.
The company reported better-than-expected consolidated sales from operations at Rs 9,669 crore, a growth of 29 per cent over Q1 last year and 14 per cent over Q4 last year. Analysts had expected 19.5 per cent YoY revenue growth for the quarter. The strong revenue growth was mainly due to 39 per cent YoY jump in domestic formulations to Rs 3,308 crore and 35 per cent YoY rise in the US formations to Rs 2,800 crore.
Ebitda (earnings before interest, taxes, depreciation, and amortization) jumped 59 per cent YoY at Rs 2,772 crore, with resulting Ebitda margin of 28.7 per cent. ICICI Securities had pegged Ebitda margin to remain at around 24 per cent and profit after tax of Rs 1,417 crore for the quarter.
The management said the company witnessed a strong Q1, driven by a combination of robust core business growth, low base and some sale of Covid products. The management is enthused by the all-around growth across all businesses compared to Q4 last year. “We continue to focus on growing our overall business and simultaneously strengthening our global specialty portfolio. The recent in-licensing of Winlevi for the US and Canada is a step forward in this direction,” Dilip Shanghvi, Managing Director of Sun Pharma said.
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