Sun Pharmaceutical Industries Ltd.’s second-quarter profit rose beating estimates, aided by a low base, even as sales in key markets India and the U.S. fell.
More Highlights (QoQ)
Revenue from India formulations fell 3.6% to Rs 3,187.8 crore, accounting for 33% of the total sales.
U.S. formulation sales (including Taro) fell 4.4% Rs 2,677.3 crore. It accounted for 28% of the consolidated sales.
Emerging markets sales increased 12.2% to Rs 1,800.5 crore, while the rest of the world saw a rise of 1.8% to Rs 1,392.6 crore. These two geographies accounted for 19% and 15%, respectively, of the total consolidated sales.
Bulk drugs or active pharmaceutical ingredient sales stood at Rs 435.8 crore, down 15.4%.
The company said it will continue to focus on increasing API supplies for captive consumption relating to its key products.
Consolidated R&D investment was at Rs 536.4 crore, down 9.5%. Three product approvals were received during the quarter.
It has launched 28 new products in the Indian market during the quarter.
Share of Sun Pharma in the Indian pharma market, according to AIOCD-AWACS, stood at 8.1% as of September.
Managing Director Dilip Shanghvi said the company remains steadfast in its focus on growing overall business and simultaneously strengthening the global specialty portfolio. “The recent launch of Winlevi (acne) in the U.S. and Ilumya (psoriasis) in Canada is a step forward in this direction,” he was quoted as saying in the filing.
Half-Yearly Highlights
After-tax profits were around 21 times higher at Rs 3,491.2 crore because of a low base due to losses reported in the first quarter of FY21.
Revenue rose 20% year-on-year to Rs 19,344.7 crore, aided by domestic demand and a ramp-up in the U.S. sales.
Margin up to 33.8% from 25.2%.
Revenue from India formulations was up 32%; and from the U.S. (including Taro) and emerging markets it was 20% higher. Rest of the world sales were up 18%.
Bulk drug sales were 11% lower than the year-ago period.
The company repaid debt worth $209 million (around Rs 1,562 crore) in H1FY22, of which $185 million (Rs 1,383 crore) was repaid in the first quarter. The company has repaid $24 million (around Rs 180 crore) in the second quarter.
With this debt repayment, Sun Pharma had a net cash of about $200 million (Rs 1,495 crore) as on Sept. 30, 2021, on ex-Taro basis.
Shares of Sun Pharma had surged around 3% after the results were announced but pared most of the gains to close 0.15% higher. That compares with a 0.18% decline in the S&P BSE Sensex.
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