Sun Pharma Q2 profit rises 28% to ₹3,040 cr

Net profit of drugmaker Sun Pharmaceutical Industries rose 28% year-on-year to ₹3,040 crore for the quarter ended Sepember compared with ₹1,375 crore in the corresponding period last fiscal.

The company’s revenue from operations increased 9% year-on-year to ₹13,291 crore for the second quarter compared with ₹12,192 crore in the year-ago period.

Operating profit or earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 24% year-on-year to ₹3,939 crore including other operating revenues. EBITDA margin stood at 29.6%.

Reacting to the earnings announcement, shares of Sun Pharma rose 3% to hit a high of ₹1,916 on the BSE.

Domestic formulation sales increased 11% to ₹4,265 crore in Q2, accounting for around 32% of total consolidated sales.

US formulation sales rose 20% to $517 million, accounting for approximately 33% of total consolidated sales. Global Specialty sales increased 19% to $286 million. Emerging markets formulation sales rose 3% to $293 million and Rest of World formulation sales fell 3.5% to $199 million.

The company’s R&D investments stood at ₹792 crore compared to ₹773 crore for Q2 FY24.

“Sun has recently strengthened its specialty pipeline through an agreement with Philogen for commercialising late stage candidate Fibromun, upon approval. With Fibromun, our product basket for dermatologists has expanded further. We shall continue to leverage our strong cash position to strengthen our pipeline with products that are close to market,” says Dilip Shanghvi, chairman and managing director of Sun Pharma.

Sun Pharma’s market share has increased from 7.7% to 8.1% in the Indian pharmaceutical market as per AIOCD AWACS MAT Sept-2024 report.

External sales of API were ₹533 crore in Q2 FY25, growing by 7.4% over Q2 last year. For the first half, API sales were at ₹1,028 crore, declining slightly over first half last year. “Our API business imparts benefits of vertical integration and continuity of supply chain for our formulations business. We continue to focus on increasing API supply for captive consumption for key products,” the company says.

“Our R&D efforts span across both specialty and generic businesses and we continue to invest in building the pipeline for various markets including the US, Emerging Markets, RoW Markets and for India. Our specialty R&D pipeline includes 7 molecules undergoing clinical trials,” the company says.

"We have a comprehensive product offering in the US market consisting of approved ANDAs for 538 products while filings for 105 ANDAs await US FDA approval, including 28 tentative approvals. Additionally, the portfolio includes 51 approved NDAs while 13 NDAs await US FDA approval. For the quarter, 3 ANDA were filed and 1 ANDA approvals was received. Additionally, 1 NDA approval was received, " it adds.