Sun Pharma Q4 Results: Revenue Up 16%, Profit Meets Estimates

Sun Pharma reported a consolidated net profit of Rs 1,984 crore in Q4, as against a loss of Rs 2,277 crore a year earlier.

<div class="paragraphs"><p>(Source: Unsplash)</p></div>
(Source: Unsplash)

Sun Pharmaceutical Industries Ltd. reported a profit in the fourth quarter in line with analyst estimates, driven by growth across geographies.

India's largest drugmaker reported a consolidated net profit of Rs 1,984 crore in the January-March quarter, as against a loss of Rs 2,277 crore a year earlier, according to its exchange filing. That compares with the Rs 1,978 crore consensus estimate of analysts tracked by Bloomberg.

Excluding the exceptional items, adjusted net profit for the quarter was Rs 2,156 crore, up 36.3% over a year earlier.

Sequentially, the profit fell 8%.

Sun Pharma Q4 FY23 Highlights (Year-on-Year)

  • Revenue rose 16% to Rs 10,931 crore, as against an estimate of Rs 10,968 crore.

  • Ebitda was up 30% at Rs 2,829 crore as compared with a forecast of Rs 2,993 crore.

  • Margin stood at 25.9% versus 23.1%. Analysts had estimated it at 27.3%.

The board of directors recommended a dividend of Rs 4 per share during their meeting on March 31.

Other Highlights (YoY)

  • Revenue from India formulations, or finished drugs, rose 9% to Rs 3,364 crore—accounting for 31% of total sales.

  • U.S. formulation sales—including Taro—rose 11% to Rs 3,534 crore ($430 million), accounting for 33% of consolidated sales.

  • Emerging market sales increased 8% to Rs 1,820 crore ($221 million), and the rest-of-the-world sales rose around 7% to Rs 1,574 crore ($191 million). These two account for 17% and around 15%, respectively, of total consolidated sales.

  • External sales of bulk drugs, or active pharmaceutical ingredients, stood at Rs 385 crore, down 7%.

  • Consolidated research and development investment was at Rs 666 crore, up around 23% over Q4 FY22.

  • The company launched 24 new products in the domestic market during the quarter.

  • It filed three abbreviated new drug applications during the quarter.

Sun Pharma's share in the Indian market, according to the AIOCD-AWACS MAT March 2023 report, was at 8.3%—the highest in the country.

"Several of our businesses including specialty, India and emerging markets have continued to progress well," Dilip Shanghvi, managing director of Sun Pharma, said in the exchange filing.

"Our specialty business remains on a growth path and we are committed to continue scaling it up. Acquisition of Concert helps further strengthen our portfolio in dermatology. Deuruxolitinib can become a leading product to address highly unmet need in alopecia areata patients," he said.

Shares of Sun Pharma rose as much as 3.38% after the results were announced on Friday, but pared gains to close 2.36% higher as compared with a 1.02% rise in the benchmark Sensex.