Sun Pharma Q2 Results: Profit Increases 28%, Meets Estimates

Sun Pharmaceuticals Ltd.'s consolidated net profit rose in the second quarter of the current financial year, meeting analysts' estimates.

The drugmaker's profit rose 27.94% to Rs 3,040 crore in the quarter-ended Sept. 30, 2024, according to an exchange filing on Monday. That compares with the Rs 2,932-crore consensus estimate of analysts tracked by Bloomberg.

• Revenue up 9.01% to Rs 13,291.4 crore (Bloomberg estimate: Rs 13,321 crore).

• Ebitda up 32.2% to Rs 3,939 crore (Estimate: Rs 3,753 crore).

• Margin at 29.63% versus 24.43% (Estimate: 28.2%).

• Net profit up 27.94% to Rs 3,040 crore (Estimate: Rs 2,932 crore).

The company's other income grew 17.5% at Rs 354 crore versus Rs 293 crore. The research and development expenses were slightly lower than expected at 6% of sales. They were expected to be at 6.9% of sales. Net profit increased on the back of lower research and development expenses and US business growth.

US Formulations

US Formulations sales were at $517 million for Q2 FY25, growing by 20.3% over the same period last year and accounting for approximately 33% of total consolidated sales. For the first half, sales were at $983 million, growing by 9.1% over same period last year.

Emerging Markets Formulations

Formulation sales in emerging markets were at $293 million for Q2 FY25, growing by 3.2% over Q2 last year and accounting for approximately 18% of total consolidated sales. For the first half, sales were at $577 million, growing by 5.9% over same period last year.

Rest of World Formulations

Formulation sales in Rest of World markets, excluding India, US and Emerging Markets, were $199 million in Q2 FY25, declining by 3.5% vs Q2 last year and accounting for approximately 13% of total consolidated sales. For the first half, sales were at $388 million, declining by 3.2% over same period last year.

Active Pharmaceutical Ingredients

External sales of API were Rs 533 crore in Q2 FY25, growing by 7.4% over Q2 last year. For the first half, API sales were at Rs 1,028 crore, declining slightly over first half last year.

API business imparts benefits of vertical integration and continuity of supply chain for our formulations business.

R&D Update

Consolidated R&D investment were Rs 792 crore for Q2 FY25, or 6% of sales as compared to Rs 773 crore for Q2 last year.

Shares of Sun Pharmaceuticals Industries were trading 2.7% higher at Rs 1910.64 apiece on the NSE, as compared to a 0.9% advance in the benchmark NSE Nifty 50.