Sun Pharma Shares Quarterly Results

Sun Pharma Shares Quarterly Results

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:44:57+05:30

Interestingly, it was a quarter, which India business triggered growth for Sun Pharma. Of course, the API pressure stays under pressure which is evident from the numbers of Taro, but that is a global phenomenon. For the Dec-21 quarter, Sun Pharma has reported stable double-digit growth in top line and bottom line.


Sun Pharma Quarterly Financial Numbers
 

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 9,863.06

₹ 8,836.78

11.61%

₹ 9,625.93

2.46%

EBITDA (Rs cr)

₹ 2,052.65

₹ 1,874.20

9.52%

₹ 2,099.57

-2.23%

Net Profit (Rs cr)

₹ 2,058.80

₹ 1,852.48

11.14%

₹ 2,047.01

0.58%

Diluted EPS (Rs)

₹ 8.60

₹ 7.70

 

₹ 8.50

 

EBITDA Margin

20.81%

21.21%

 

21.81%

 

Net Margins

20.87%

20.96%

 

21.27%

 

 

For the Dec-21 quarter, Sun Pharma reported 11.6% growth in sales at Rs.9,863 crore on a consolidated YoY basis. Driving the top line was the India formulation sales grew by 15% YoY while the US formulations grew by just about 6% at $397 million. On the other hand, the emerging markets formulations business grew 17% while ROW grew 3% YoY.

If you take a perspective view of last 9 months, the India formulations business was the fastest growing at 26%. The India vertical has built substantial traction in top line growth in the last few years. On a sequential basis, the overall revenues of Sun Pharma were up 2.46%. The board of Sun Pharma declared an interim dividend of Rs.7 per share.

Let us look at how the operating profits panned out for Sun Pharma. Operating profits were up 9.52% at Rs.2,053 crore in the Dec-21 quarter compared to the Dec-20 quarter. Sun Pharma also witnessed smart traction in EBITDA growth by 8% at Rs.2,558 crore while EBITDA margins remained robust on a peer comparison at 26.1% in the quarter. 

Sun Pharma reported sharp growth in the operating profits in the India business. Sun Pharma has a share of 8.2% of the Indian market and is the most dominant player. In the US, Taro reported lower net profits by 20% on price pressure in the API generics business. Operating margins were lower YoY, falling from 21.21% in Dec-20 quarter to 20.81% in the Dec-21 quarter. Operating margins tapered by 21 basis points on a sequential basis.

We now turn to the bottom line. Net Profits for Dec-21 quarter were higher by 11.14% at Rs.2,059 crore on the back of a stable operating performance. The R&D expenses at Rs.547 crore in the quarter were well above 5% of sales revenues; which is at par with industry standards in India. During FY22, Sun Pharma managed to repay $254 million of debt.

This debt reduction has tapered its financial and solvency risk leading to better coverage ratios in the quarter. The API business continues to be under pressure, but that has been the trend seen globally. PAT margins fell marginally from 20.96% in Dec-20 quarter to 20.87% in the Dec-21 quarter. The PAT margins were also lower on a sequential basis, but that was more because profit growth marginally trailed sales growth.


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