Sun Pharmaceuticals Industries Ltd's Q1FY19 consolidated net profit rises 76.25% yoy to Rs1,110.05cr: Beats Estimates

The company’s consolidated revenue in the period stood at Rs7,224.20cr, up 16.35% yoy and 3.54% qoq.

Aug 14, 2018 09:08 IST India Infoline Research Team

Sun Pharmaceuticals Industries Ltd Q1FY19

Consolidated Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 7,224.20 16.4
EBITDA 1,606.70 46.6
EBITDA Margin (%) 22.2 459
Net Profit (adjusted) 1,110.05 76.3
***EBITDA margin change is bps

Sun Pharma’s revenue in Q1FY19 grew 16.4% yoy to Rs7,224.2cr. EBITDA grew 46.6% yoy to Rs1,606.7cr in Q1FY19 vs. Rs1,095.6cr in Q1FY18. EBITDA margins in Q1FY19 grew 459bps yoy to 22.2% in Q1FY19 vs. 17.6% in Q1FY18 and 24.1% in Q4FY18. PAT grew 76.3% yoy to Rs1,110cr in Q1FY19 vs. Rs630cr in Q1FY18.
  • The Q1FY19 revenue/EBITDA/PAT beat our estimates by 5%/6%/25% respectively. 
  • Gross margins stood at 70.8% vs. 74.6% in Q4FY18 and 73% in Q1FY18.
  • COGS grew 25.6% yoy, while employee cost grew 7.8% yoy.
  • Other expenses declined 1.3% yoy, which helped the company to report strong EBITDA margins.
  • India revenue grew 22% yoy to Rs2,152cr in Q1FY19.
  • US finished dosage sales grew 8% yoy to $380mn in Q1FY19.
  • Emerging Markets sales grew 16% yoy to $195mn in Q1FY19.
  • ROW sales de-grew 7% yoy $107mn in Q1FY19.
  • R&D investments during Q1FY19 stood at Rs500cr, 6.9% of sales vs. 8.4% in Q1FY18.
  • Company’s PAT in Q1FY18 was adversely impacted by Rs951cr due to the Modafinil antitrust litigation settlement with certain plaintiffs in the US.
  • Company is awaiting USFDA final approval for two specialty products, Xelpros and Elepsia, which are filed from Halol.
  • Company also expects to launch Cequa in the coming quarters.





Technical View:

Sun Pharmaceuticals Industries Ltd is currently trading at Rs. 597, up by 34.25 points or 6.09% from its previous closing of Rs. 562.75 on the BSE.
The scrip opened at Rs. 566.20 and has touched a high and low of Rs. 598 and Rs. 560.40 respectively. So far 1,28,84,777 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.

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