October 28, 2024
New Delhi, India
Sun Pharma Q2 Results
Sun Pharmaceutical Industries Ltd. delivered a solid performance in Q2 FY25, with a significant year-on-year (YoY) growth in both net profit and revenue. The company continues to strengthen its product pipeline while enhancing its global market presence.
Financial Highlights
Profit and Revenue
- Net Profit: Sun Pharma posted a consolidated net profit of ₹3,040 crore for Q2 FY25, a 28% YoY increase compared to ₹2,375 crore in the same quarter last year. Sequentially, net profit rose by 7.2%.
- Revenue from Operations: Consolidated revenue reached ₹13,291 crore, marking a 9% YoY increase, driven by strong growth in India and the US formulation markets.
EBITDA
- EBITDA: The company’s EBITDA rose by 24% YoY to ₹3,939 crore, reflecting an EBITDA margin of 29.6%.
Segment Performance
Formulation Sales
- India: Formulation sales in India increased 11% YoY to ₹4,265 crore, making up 32% of the total revenue.
- US Market: Sales in the US formulations segment grew by 20% YoY, reaching $517 million, representing approximately 33% of Sun Pharma’s total sales.
- Emerging Markets and Rest of World: Sales in emerging markets grew 3% YoY to $293 million, while the Rest of World (ROW) sales fell by 3% YoY to $199 million.
API Sales
- Active Pharmaceutical Ingredients (API): External API sales saw a 7% YoY increase, reaching ₹534 crore. Sun Pharma noted that its API business provides critical supply chain stability for its formulations division.
Strategic Initiatives and R&D Investments
- Specialty Pipeline Expansion: Sun Pharma has strengthened its specialty pipeline through a recent agreement with Philogen to commercialize the late-stage candidate Fibromun upon approval. This addition enhances the company’s dermatology offerings.
- R&D Investment: The company invested ₹793 crore in research and development, focusing on expanding its specialty product portfolio and pipeline for future growth.
Market Reaction
Sun Pharma’s stock responded positively to the Q2 results announcement, trading 2% higher at ₹1,901 on the NSE.
CEO’s Statement
Dilip Shanghvi, Chairman and Managing Director, stated, “We shall continue to leverage our strong cash position to strengthen our pipeline with products that are close to market, ensuring sustainable growth and value creation.”
Future Outlook
Sun Pharma remains committed to expanding its specialty pipeline and investing in strategic growth areas, supported by a robust financial performance and continued operational efficiency.
Latest Q2 Results
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
