Sun Pharma (Q2 FY13)
Sun Pharma (Q2 FY13)
Revenue growth of 40% yoy and flat qoq to Rs26.5bn was 6% better than our estimates
The growth was primarily led by better than expected growth in its US subsidiary, continued benefit from Doxil in US and higher realisation
Domestic market adjusting for higher sales last year grew by 19% yoy to Rs8.1bn
US Formulation clocked in strong revenue growth of 67% yoy to Rs15.3bn (largely led by Doxil sales); US$ revenue growth at 38% yoy
EBIDTA margin at 44%, 260 bps improvement yoy is again led largely by Taro performance, one-off and better realization of Rupee
In line with sales, Adjusted PAT accelerated by 51% to Rs9bn
Reported PAT was down 46% yoy on account of one-time provision of Rs5.9bn (~10% of Wyeth’s claim of US$960mn for Protonix)
The company announced the acquisition of DUSA Pharmaceuticals (listed at NASDAQ) for a cash consideration of US$230mn
We keep scope of revising our estimates after DUSA consolidation. However, at present we maintain our rating to MP on the back of limited upside led by stretched valuations
|(Rs mn)||Q2 FY13||Q2 FY12||% yoy||Q1 FY13||% qoq|
|Inc/(dec) in stock||(1,043)||(1,163)||(10.3)||(852)||22.4|
|Consumption of Materials||(4,872)||(4,367)||11.6||(4,978)||(2.1)|
|Purchase of Traded Goods||(1,057)||(435)||142.9||(897)||17.8|
|OPM (%)||44.0||41.38||259 bps||45.78||(180 )bps|
|Effective tax rate (%)||17.3||15.3||201 bps||17||7 bps|
|Min Interest & other Adj||1,161||1,097||5.8||1,256||(7.5)|
|PAT margin (%)||34.0||31.55||244 bps||29.9||406 bps|
|Ann. EPS (Rs)||34.7||23.1||51.1||30.7||13.5|
Revenue growth of 40% yoy to Rs26.5bn was largely in line with our estimates. The growth in revenues is primarily led by higher than expected growth in its US subsidiary (Taro), one-off like cancer drug Doxil in US and forex impact. Adjusted Domestic growth moderated to 19% yoy (adjusted for pre-booked sales of last year). US revenue declined by ~US$40mn qoq, largely on account of moderation in Lipodox (generic doxil) sales in Q2FY13. International formulation sale at US$68mn grew by 21% yoy (in $ terms). Formulation sales in rest of the world markets outside of India and US grew by 21% yoy to US$ 68mn in Q2FY13. In RoW, excluding US Taro sales, underlying sales growth in $ terms was 34% for the Q2 FY13 and 40% for H1FY13. API business which is largely for captive purpose, also, continues to grow. External sales of API reached Rs1.8bn in Q2FY13 registering a growth of 10% yoy.
|Rsmn.||Q2FY13||Q2FY12||% yoy||Q1FY13||% qoq|
Get the most detailed result analysis on the web - Real Fast!
Actionable & Award-Winning Research on 500 Listed Indian Companies.