Sun Pharmaceutical Q1 Results: Profits Fall 2% Due To Exceptional Loss
Sun Pharmaceutical Industries Ltd.'s profit fell in the first quarter owing to a one-time exceptional loss.
India's largest drugmaker's consolidated net profit fell 2% over a year earlier, to Rs 2,023 crore in the April-June quarter, according to an exchange filing. That compares with the Rs 2,162 crore consensus estimate of analysts tracked by Bloomberg.
Sequentially, the profit rose 2%.
The exceptional loss of Rs 323 crore on account of impairment of an intangible asset under development, the forex loss pertaining to Ranbaxy Nigeria Ltd. because of the devaluation of the naira against the U.S. dollar, and the impact of the planned relocation of Alchemee operations from California to New York and consequent one-time transitional expenses.
Sun Pharma Q1 FY24 Highlights (Year-on-Year)
Revenue rose 11% to Rs 11,941 crore (Bloomberg estimate: Rs 11,742 crore).
Ebitda was up 22% at Rs 3,330 crore (Bloomberg estimate: Rs 2,991 crore).
Margin stood at 27.9% versus 25.4% (Bloomberg estimate: 25.5%).
Other Highlights (YoY)
Revenue from India formulations, or finished drugs, rose 5% to Rs 3,560 crore, accounting for 30% of total sales.
U.S. formulation sales, including Taro, rose 12% to Rs 3,871 crore ($471 million), accounting for 33% of consolidated sales.
Emerging market sales increased 7% to Rs 2,145 crore ($261 million), and the rest-of-the-world sales rose around 3% to Rs 1,604 crore ($195 million). These two account for 18% and around 14%, respectively, of total consolidated sales.
External sales of bulk drugs, or active pharmaceutical ingredients, stood at Rs 540 crore, down 10%.
Consolidated research and development investment was at Rs 680 crore, up around 47% over Q1 FY23.
The company launched 10 new products in the domestic market during the quarter.
It filed two abbreviated new drug applications during the quarter.
Sun Pharma's share in the Indian market was at 8.3%, the highest in the country, according to the AIOCD-AWACS MAT June 2023 report.
"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," said Dilip Shanghvi, managing director of Sun Pharma, in the exchange filing.
Shares of Sun Pharma rose 1.36%, after the results were announced on Thursday at 2:37 p.m., compared to a 1.03% decline in the benchmark S&P BSE Sensex.
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