Sun Pharma Q2 profit rises 10.5% to ₹2,262 cr; revenue up 13%

Pharmaceutical major Sun Pharmaceutical Industries Ltd has reported 10.5% YoY growth in its net profit at ₹2,262 crore for the July-September quarter, on double-digit topline growth and strong margins in India, the company said in an exchange filing today.

The company's revenue surged 13.1% to ₹10,809 crore, while its India formulation sales stood at ₹3,460 crore, a growth of 8.5% YoY. The pharma company's Q2 EBITDA rose 12.4% to ₹2,956.5 crore, including other operating revenues, while EBITDA margin declined to 27% versus 27.3% in the same period last year.

According to Sun Pharma, its India formulation sales accounted for about 32% of its total consolidated sales. For the first half of the fiscal year (H1 FY23), the company's sales rose 5.4% to ₹6,847.1 crore. The company, citing the AIOCD AWACS MAT Sept-2022 report, said it's the "number 1" pharma company in India and that its market share increased by 0.5% to 8.6% over last one year.

Sun's US formulation sales were at $412 million in the second quarter, up 14.1% YoY; global Q2 specialty sales up were 27.5% at $200 million; and emerging markets formulation sales were up 6.7% at $259 million. In the rest of the world, the company's formulation sales dipped 3.8% YoY to $181 million, impacted by adverse currency movements.

Sun's R&D investments for the said quarter rose to ₹571 crore, compared to ₹536 crore in the year-ago period. For the first half, R&D expense was ₹1,031.8 crore, or 4.8% of its total sales. Its specialty R&D pipeline includes four molecules undergoing clinical trials.

“For Q2, we recorded double-digit topline growth and strong margins driven by market share gain in India, sustained ramp-up of our global specialty business and growth in emerging markets. Global specialty business has grown by 27.5% driven by Ilumya, Cequa and Winlevi. We continue to focus on expanding our global specialty business and growing all our businesses,” says Sun Pharma MD Dilip Shanghvi.

Notably, Shanghvi started his business way back in 1983, with ₹10,000 borrowed from his father. He launched Sun Pharma with two employees and five psychiatry products in Calcutta. It is now India's largest pharmaceutical company by m-cap.

For Q2 FY23, Sun says the external sales of API (Active Pharmaceutical Ingredients) increased 8.5% YoY to ₹473 crore. For the first half, its API sales grew 13% YoY to ₹1,071.7 crore. The company's net profit for the first half of the fiscal year was up 23.8% YoY to ₹43,23.1 crore, while gross sales surged 11.6% YoY to ₹21,453.2 crore.

The Sun Pharma stock closed 1.68% up at ₹1,033 today as compared to the previous session close of ₹1,016.9 on the NSE. The stock continues to see persistent growth in the past year. The pharma company shares surged 3.97% in the past week; 9.37% in the past month; 11.87% in the past six months; and 21.68% in the year-to-date period.