Sun Pharmaceuticals Industries Ltd's Q3FY18 consolidated net profit declines 75.17% yoy to Rs365.39cr

India Infoline Research Team | February 14, 2018 16:48 IST

The company’s consolidated revenue stood at Rs6,653.23cr, down 16.05% yoy but up 0.04% qoq.

Sun Pharmaceuticals Industries Ltd Q3FY18

Consolidated Results Q3FY18: (Rs. in crore)

Q3FY18 YoY (%)
Revenue 6,653.23 [16.1]
EBITDA 1,453.40 [40.8]
EBITDA Margin (%) 21.8 [910]
Net Profit (adjusted) 365.39 [75.2]
***EBITDA margin change is bps
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Buy

Reco. Price

576.3

Last updated on

23-Jan-2018

Sun Pharma’s revenue declined 16% yoy to Rs6,653cr in Q3FY18 vs. Rs7,925cr in Q3FY17. The reported revenue is 2% below the street expectation of Rs6,800cr. EBITDA declined 40.8% yoy to Rs1,453cr in Q3FY18 vs. Rs2,453cr in Q3FY17. EBITDA margins were at 21.8% in Q3FY18 vs. 20.7% in Q2FY18 and 31% in Q3FY17. Reported EBITDA is 5% above the consensus expectation (Rs1,375cr), while margins are also above the street expectation of 20.2%. Net profit after tax declined 75.2% yoy to Rs365cr in Q3FY18 vs. Rs1,472cr in Q3FY17. Though net profit is below the consensus expectation of Rs800cr, it was due to the one-time exceptional impact of the change in the US tax rates (Rs513cr), else PAT could have been Rs878cr, beating the street expectation.
  • The decline in the revenue is primarily due to the decline in the US business, which declined 35% yoy to $328mn. This was triggered by pricing pressure in the US market and decline in sales of gImatinib and gOlmesartan authorized generics.
  • Sun Pharma’s subsidiary Taro also reported weak results earlier this month with 30% and 87% yoy decline in revenue and PAT.
  • Domestic sales grew 6% yoy to Rs2,085cr.
  • Emerging market sales grew 10% yoy to $189mn while ROW sales grew 6% yoy to $120mn.
  • Sun Pharma’s gross margins declined by more than 300bps yoy and qoq indicating impact of the pricing pressure in the US.
  • During the quarter, company has reported taxes higher by Rs513cr due to the re-measurement of the company’s deferred tax assets as a result of change in the US tax rates.
  • In Q3FY18, company filed 4 ANDAs and received 5 approvals. Its cumulative ANDA pipeline includes 418 ANDAs with 126 ANDAs awaiting approval.
  • Company has said that the results indicate gradual improvement in the performance of the company.


Technical View:

Sun Pharmaceuticals Industries Ltd ended at Rs. 574.45, down by 14.9 points or 2.53% from its previous closing of Rs. 589.35 on the BSE.
The scrip opened at Rs. 592.05 and touched a high and low of Rs. 593.90 and Rs. 570 respectively. A total of 73,58,200(NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.


***Note: This is a NSE Chart

 

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