Sun Pharmaceuticals Q4 Results: Profit Falls 19%, Misses Estimates

Sun Pharmaceutical Industries Ltd.'s profit declined in the fourth quarter of fiscal year 2024-25, thereby missing the estimates shared by analysts.

India's largest drugmaker's consolidated net profit fell 19% year-on-year to Rs 2,154 crore in the March quarter, according to an exchange filing on Thursday. That compares with the Rs 2,794-crore consensus estimate of analysts tracked by Bloomberg.

Sun Pharma Q4 FY25 Highlights (YoY)

• Revenue up 8% at Rs 12,959 crore versus Rs 11,983 crore (Bloomberg estimate: Rs 13,254 crore).

• Ebitda up 22.4% at Rs 3,716 crore versus Rs 3,035 crore (Bloomberg estimate: Rs 3,651 crore).

• Margin at 28.7% versus 25.3% (Bloomberg estimate: 27.5%).

• Net profit down 19% to Rs 2,154 crore versus Rs 2,659 crore (Bloomberg estimate: Rs 2,794 crore).

The company has also declared a dividend of Rs 5.5 per share.

Sun Pharmaceutica's net profit in the fourth quarter was impacted by an exceptional loss of Rs 361.6 crore and higher income tax. The exceptional charge stems from a tentative settlement agreement, without admitting wrongdoing, for the National Prescription Opiate Litigation in a US District Court.

Segment-wise, the drugmaker's India formulation sales stood at Rs 4,213 crore, growing by 13.6%. Global specialty sales reached $295 million, up 8.6%, and contributing significantly to the quarter's sales at 19.9%. Emerging markets formulation sales increased by 6.3% to $261 million, while "rest of world" formulation sales saw a 2.% increase to $200 million.

However, US formulation sales experienced a slight decline of 2.5% to $464 million.

"Our businesses delivered a robust performance for the year, driven by improving market share in India and growth in global specialty. The nearterm pipeline in global specialty is promising, with products such as Leqselvi and Unloxcyt—the latter through our recently announced Checkpoint acquisition—offering significant improvements in patient care. We look forward to specialty becoming an increasingly important part of our business." said Dilip Shanghvi, chairman and managing director of the company.