Sun Pharma Q3 net up 11.14% yoy at Rs2,059cr on 8% growth in EBITDA and EBTIDA margins at 26.1%

1 Feb 2022 , 09:01 AM

Sun Pharma Ltd reported 11.61% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs9,863cr. On a sequential basis, the revenues were up by 2.46%.

During the December 2021 quarter, the India formulation sales grew by 15% yoy, US formulations grew 6% at $397 million while the emerging markets formulations business grew by 17% yoy. Even the rest of the world saw a marginal 3% growth in top line on a yoy basis.

Over a 9 month period, the India business was the fastest growing at 26% as India traction built up substantially in the last couple of years. The board of Sun Pharma has also declared an interim dividend of Rs.7 per share.

For the Dec-21 quarter, the operating profits were up on a yoy basis by 9.52% at Rs2,053cr. During the quarter, there was solid traction in EBITDA growth by 8% at Rs2,558cr while the EBITDA margins came in at a healthy 26.1% in the quarter.

Sun Pharma reported sharp growth in the India business where it dominates with nearly 8.2% market share. In the US, Taro reported lower net profits by 20% yoy on price pressure in the generics business.

Operating margins fell marginally from 21.21% in Dec-20 quarter to 20.81% in the Dec-21 quarter. Operating margins were lower on a sequential basis by 21 bps.

Net Profit after tax (PAT) for the Dec-21 quarter was up 11.14% yoy at Rs2,059cr on the back of the robust operating performance getting transmitted to the bottom line. R&D expenses at Rs547cr were robust at well above 5% of sales revenues. In the first nine months of the fiscal till date,

Sun Pharma has repaid $254 million of debt, reducing its financial risk further with internal resources. The API business continues to be under pressure, but that has been the trend globally.

PAT margins fell marginally from 20.96% in the Dec-20 quarter to 20.87% in the Dec-21 quarter. The PAT margins were also lower on a sequential basis.

Financial highlights for Dec-21 compared yoy and sequentially

	Sun Pharma
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 9,863.06	₹ 8,836.78	11.61%	₹ 9,625.93	2.46%
EBITDA (Rs cr)	₹ 2,052.65	₹ 1,874.20	9.52%	₹ 2,099.57	-2.23%
Net Profit (Rs cr)	₹ 2,058.80	₹ 1,852.48	11.14%	₹ 2,047.01	0.58%
Diluted EPS (Rs)	₹ 8.60	₹ 7.70		₹ 8.50
EBITDA Margin	20.81%	21.21%		21.81%
Net Margins	20.87%	20.96%		21.27%