Sun Pharma Q1 profit surges 40% to ₹2,836 cr

Pharma major Sun Pharmaceutical Industries reported a 40% year-over-year (YoY) rise in its net profit to ₹2,835.6 crore in Q1 FY25, from 2,022.54 crore in the same period last year. The pharma company's revenue for the April-June quarter rose by 5.9% to ₹12,652.75 crore from ₹11,940.84 crore in the same period last year.

Following the Q1 results, shares of Sun Pharma surged 1.6% to reach a 52-week high of ₹1,746 apiece on the BSE today. The scrip opened higher at ₹1,727.30 against the previous closing price of ₹1,717.85 on the BSE. The stock rose 12.76% over the past month, gained 21.74% in the past six months, and increased 36% year-to-date (YTD). Finally, shares of Sun Pharma ended 0.11% lower at ₹1,715.95, with a market capitalisation of ₹4,11,703.83 crore on the BSE.

In India, Sun Pharma's formulation sales grew by 16.4% to ₹4,144.5 crore, making up about 33.1% of total consolidated sales. The company introduced six new products in the Indian market during the quarter. However, formulation sales in the U.S. saw a slight decline of 1% YoY to $466 million, below the estimated $518 million, representing over 31.1% of total consolidated sales.

Global specialty sales increased by 14.7% to $266 million, contributing 17.7% to total sales. Emerging markets formulation sales rose by 8.8% to $284 million, while sales in the rest of the world formulation sales fell by 2.9% to $190 million. Additionally, external sales of Active Pharmaceutical Ingredients declined by 8.3% to ₹494.6 crore, with the company focusing on increasing API supply for captive consumption for key products.

Investment in research and development for the quarter increased to ₹793.97 crore in Q1 FY25 from ₹679.62 crore in the same period last year. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) for the April-June quarter rose by 8.3% YoY to ₹3,607.6 crore, with the EBITDA margin improving to 28.5% from 27.9% the previous year.

Dilip Shanghvi, chairman and managing director of Sun Pharma, said, “Sun has recently attained several milestones with the approval of Leqselvi in the US, the filing of Nidlegy in Europe and the completion of acquisition of Taro minority shares. These steps advance our innovative as well as generic business offerings, and will help us serve patients better.”