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Informist, Thursday, Jul. 31, 2025

 

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--Sun Pharma Apr-Jun consol net profit INR 22.79 bln vs INR 28.36 bln yr ago
--Analysts saw Sun Pharma Apr-Jun consol net profit at INR 29.62 bln
--Sun Pharma Apr-Jun consol revenue INR 138.51 bln vs INR 126.53 bln yr ago
--Sun Pharma Apr-Jun net profit includes one-time cost INR 8.18 bln
--Sun Pharma Apr-Jun India formulation sales INR 47.21 bln, up 13.9% on year
--Sun Pharma Apr-Jun net profit excluding one-time cost is INR 30.97 bln
--Sun Pharma Apr-Jun US formulation sales $473 mln, up 1.4% on year
--Sun Pharma Apr-Jun consol EBITDA INR 43.02 bln, up 19.2% on year
--Sun Pharma Apr-Jun consol EBITDA margin 31.1%
--Sun Pharma Apr-Jun India formulation sales 34.2% of total sales
--Sun Pharma Apr-Jun US formulation sales 29.3% of total revenue
--Sun Pharma Apr-Jun global innovative medicines sales $311 mln, up 16.9% YoY
--Sun Pharma Apr-Jun global innovative medicines sales 19.3% of total sales
--Sun Pharma Apr-Jun emerging mkt formulation sales $298 mln, up 5.1% on year
--Sun Pharma Apr-Jun emerging mkt formulation sales 18.5% of total sales
--Sun Pharma Apr-Jun Rest of World formulation sales $219 mln, up 15.5% on year
--Sun Pharma Apr-Jun Rest of World formulation sales 13.6% of total sales
--Sun Pharma Apr-Jun API external sales INR 5.40 bln, up 9.3% on year
--Sun Pharma: Innovative R&D pipeline includes six novel cos in clinical stage
--Sun Pharma Apr-Jun consol R&D spend INR 9.03 bln vs INR 7.94 bln year ago

 

By Sunil Raghu

 

AHMEDABAD – Sales of formulations across markets, be they in India, the US, emerging markets, or rest of the world, coupled with a rise in sales of global innovative medicine and a jump in external sales of active pharmaceutical ingredients proved to be a booster dose for Sun Pharmaceutical Industries Ltd.'s top line for the June quarter.

 

Sun Pharmaceutical Thursday reported a consolidated net profit of INR 22.79 billion for the quarter, down 19.6% on year. The company reported a one-time exceptional cost of INR 8.18 billion during the quarter. Its revenue from operations rose 9.5% on year to INR 138.51 billion.

 

The company missed the Street's expectations on the bottom line but beat the view on the top line. Analysts had projected Sun Pharmaceutical's June quarter net profit at INR 29.62 billion on a revenue of INR 136.28 billion. This is the second successive quarter, after six quarters of double-digit growth, that the company has reported a year-on-year fall in net profit.

 

The one-time exceptional cost incurred by the company in the June quarter is related to tax, payments after a settlement agreement, and legal expenses. A back-of-the-envelope calculation showed that but for this one-time cost of INR 8.18 billion, Sun Pharmaceutical's consolidated net profit for the quarter would have been INR 30.97 billion. At the same time, a calculation by the company showed net profit would have been INR 29.96 billion without the exceptional cost.

 

Sun Pharmaceutical reported a 1.4% rise on year in US formulation sales for the June quarter to $473 million, it said in a press release. US formulations account for 29.3% of the company's total sales. The company's global specialty product sales, which account for nearly 20% of total sales, were up 16.9% on year at $311 million.

 

"Sun had a strong performance during the quarter, where overall growth reflects steady progress across all our markets," Chairman and Managing Director Dilip Shanghvi said in a press release. "India continues to show strong momentum, contributing meaningfully to our performance. The US launch of Leqselvi represents an important step forward, offering a new treatment option for patients with severe alopecia areata. Leqselvi augments our portfolio in dermatology and adds a growth engine to our innovative medicines business."

 

In India formulation sales, which account for 34.2% of total consolidated sales, the company reported 13.9% rise on year to INR 47.21 billion, Sun Pharmaceutical said. The emerging markets formulation sales rose 5.1% on year to $298 million while the rest-of-the-world formulation sales rose 15.5% on year to $219 million. The company's active pharmaceutical ingredient sales for external clients during the June quarter was up 9.3% on year at INR 5.4 billion.

 

Sun Pharmaceutical reported earnings before interest, tax, depreciation, and amortisation margin of 31.1% for the June quarter. Its EBITDA was up 19.2% on year at INR 43.02 billion. According to an average of estimates from 11 brokerages, the company's EBITDA for the June quarter was pegged at INR 37.67 billion. The EBITDA margin was expected to rise 80 basis points on quarter to 27.2%.

 

The brokerages had expected Sun Pharmaceutical's research and development expenditure to be 7% of sales, up 70 bps on quarter. In reality, the company's spending on R&D for the quarter stood at INR 9.00 billion, around 6.5% of total sales. Sun Pharmaceutical said its R&D spending is focused on both the specialty and generic businesses and the company continues to invest in building the pipeline for various markets. Sun Pharmaceutical's specialty R&D pipeline includes six novel entities in the clinical trial stage, the company said.

 

Thursday, shares of Sun Pharmaceutical Industries ended 1.6% lower at INR 1,706.70 on the National Stock Exchange. The company released its financial results for the June quarter during market hours.  End

 

US$ = INR 87.59

 

Edited by Rajeev Pai

 

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