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Sun Pharma Q3 results: Net profit up 16.5% at Rs 2,524 cr on US, India biz

Bloomberg analysts' estimates had pegged the revenue at Rs 12,336 crore and PAT at Rs 2,470 crore

Sun Pharma

Sun Pharma

Sohini Das Mumbai

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India’s largest domestic drug maker Sun Pharmaceutical Industries reported a 16.5 per cent year-on-year (Y-o-Y) rise in net profit for the third quarter of the financial year 2023-24 to Rs 2,523.8 crore, riding on a 9.5 per cent growth in sales at Rs 12,156.9 crore.

Revenues from US and India operations as well as global specialty business sales grew in double digits. Adjusted net profit (excluding exceptional items) for Q3FY24 was Rs 2,593.6 crore, up 19.7 per cent.

The consolidated earnings before interest, taxes, depreciation and amortisation (Ebitda) for the quarter came in at Rs 3,476.8 crore (including other operating revenues), up 15.8 per cent Y-o-Y.

This resulted in an Ebitda margin of 28.1 per cent against 26.7 per cent in the corresponding quarter of last financial year. Sequentially, the revenues were up 1.2 per cent while profit after tax (PAT) was up 6.2 per cent.

Bloomberg analysts had pegged the revenue estimates at Rs 12,336 crore and PAT at Rs 2,470 crore.

Total revenue from operations (adding other operating revenues) for Sun Pharma came in at Rs 12,380 crore in line with the estimates and PAT was also in line with estimates.

The stock reacted positively and was up 3.42 per cent on the BSE. 

Dilip Shanghvi, managing director (MD), Sun Pharma, said, “We are pleased by our continued broad-based growth, including in Global Specialty. We are keenly looking forward to European Medicines Agency (EMA) filing of Nidlegy in the coming months. Once approved, Nidlegy will significantly expand our onco-derm franchise in Europe.”

The company said its India formulation sales went up 11.4 per cent (Rs 3,778 crore) while US formulation sales were up 13.2 per cent during the quarter ($477 million). 

Sun Pharma Q3 FY24 Results

Global specialty sales came in at $296 million, including a $20-million milestone received in Q3. Excluding milestones, specialty sales were up 24.2 per cent.

Emerging market sales declined by 2.3 per cent ($252 million), impacted by adverse currency movements. 

Rest of the World formulation sales were at $214 million, up 12.9 per cent.

India accounts for 31 per cent of the total sales, while the US comprises around 33 per cent.

Sun Pharma’s subsidiary Taro reported net sales of $157 million for the quarter, up 12.9 per cent. It is principally due to new launches and gross-to-net (GTN) adjustments. Excluding the impact of GTN adjustments, sales growth was in the high-single digit.

Taro’s net profit for Q3FY24 was $20.2 million compared to $7.3 million in Q3FY23.

Recently, Sun has signed a definitive merger agreement with Taro to acquire the remaining stake that it doesn’t own now. 

The agreed price of $43.00 per share is poised to deliver a 48 per cent premium to the unaffected price on May 25, 2023.

The merger agreement is subject to various closing conditions, including shareholder approval.

For Q3FY24, external sales of active pharmaceutical ingredients (APIs) were Rs 466.1 crore, lower by 9.6 per cent. The company said: “We continue to focus on increasing API supply for captive consumption of key products.”

Research and development (R&D) investments were Rs 824.5 crore for the quarter under review compared to Rs 670.2 crore in Q3FY23.

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First Published: Jan 31 2024 | 5:12 PM IST

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