Sun Pharma Q1 net profit drops 2% YoY, Revenue up 11%; US sales at $471 mn

Sun Pharma Q1 results: The net profit was reported after accounting for an exceptional loss of Rs 323 crore. EBITDA margin for Q1 came at 27.9 per cent over 26.8 per cent reported in Q1FY23

Drug maker Sun Pharmaceutical Industries (Sun Pharma) consolidated net profit fell 1.8 per cent on a year-on-year (YoY) basis to Rs 2,023 crore for the June quarter of financial year 2024 (Q1FY24). Its profit in the year ago period was Rs 2,061 crore.

The net profit was reported after accounting for an exceptional loss of Rs 323 crore, which included impairment charges of an acquired intangible asset, foreign exchange loss pertaining to a subsidiary and impact of a planned relocation of a business. 

The company's revenue grew 11 per cent YoY for Q1 to Rs 11,785 crore. The stock, which was up over 2 per cent before the results, pared the gains and was trading 1 per cent higher at 2:40 pm. 

The company's R&D investments came in at Rs. 6,79.6 crore compared to Rs 4,60.8 crore last year. It reported EBITDA of Rs. 3,331.8 crore, up 15.5 per cent from the year ago period. EBITDA margin for Q1 came at 27.9 per cent over 26.8 per cent reported in Q1FY23. 

“All our business continued to have growth this quarter and we are well positioned to meet our growth guidance for FY24. US has led the revenue growth in Q1 and Global Specialty has continued to increase as a share of our revenues. I am excited about the progress in our specialty pipeline," said Dilip Shanghvi, Managing Director, of Sun Pharma in a release. 

The company's India formulation sales rose 5.1 per cent versus last year to Rs 3,560.4 crore. US formulation sales at $471 million grew 12 per cent over the last year, and were better than analyst expectations. 
 

Global specialty sales, which accounted for 16.2 per cent of Q1 sales, rose 21 per cent YoY to $232 million.

Emerging Markets formulation sales grew 6.5 per cent to $261 million. Rest of World formulation sales came in 2.6 per cent higher at $195 million.