Sun Pharmaceutical Industries posted its fiscal first quarter profit at Rs 2022.54 crore, down 1.9 per cent in comparison to Rs 2060.88 crore during the first quarter of FY23, on lower profitability at Taro. It posted revenue from operations at Rs 11,940.84 crore, up 11 per cent as against Rs 10,761.76 crore during Q1FY23. According to CNBC TV18 estimates, Sun Pharma was expected to post a profit of Rs 2090.4 crore and revenue at Rs 11,657.6 crore during the quarter ended June 2023. While the company posted a total income of Rs 12,145.28 crore during Q1FY24, total expenses for the quarter in review stood at Rs 9341.27 crore.
The company EBITDA stood at Rs 3332 crore. “The Q1FY24 EBITDA of was 13 per cent above our estimate but was largely driven by higher-than-expected gRevlimid sales (lumpy in nature) and lower R&D spending, both of which are unlikely to sustain at a similar level. Despite higher gRevlimid sales during the quarter, gross margin fell by 240bp QoQ, as specialty sales came off QoQ,” said Praful Bohra from InCred Equities.
Sun Pharma’s gross sales during the quarter was at Rs 11,785.20 crore, up 10.7 per cent on-year. Meanwhile, the R&D investments for the quarter was at Rs 679.60 crore as against Rs 460.80 crore during Q1FY23.
Sun Pharma’s Q1 performance across markets
Sun Pharma’s India formulation sales was at Rs 3560.40 crore, up 5.1 per cent on-year, which accounted for about 30 per cent of total consolidated sales. For Q1FY24, the company launched 10 new products in the Indian market.
The US formulation sales were $471 million recording a growth of 12 per cent over Q1 last year, accounting for over 33 per cent of total consolidated sales.
Taro posted sales during the quarter at $159 million, up by 1.4 per cent YoY. It reported net profit of about $10 million, down 28.9 per cent over Q1 last year. “Excluding the impact from certain one-time items in the current year quarter, net income was $14.9 million as against the net profit of $14.1 million of Q1FY23,” it said.
The sales in emerging markets were at $261 million for Q1, up 6.5 per cent over Q1FY23. Overall sales in emerging markets accounted for about 18 per cent of total consolidated sales during the quarter/
Formulation sales in Rest of World (ROW) markets, excluding US and emerging markets, were $195 million in Q1FY24, up 2.6 per cent over Q1 last year and accounted for approximately 14 per cent of total consolidated sales.
“All our business continued to have growth this quarter and we are well positioned to meet our growth guidance for FY24. US has led the revenue growth in Q1 and Global Specialty has continued to increase as a share of our revenues. I am excited about the progress in our specialty pipeline and the potential for offering new treatments for patients in need,” said Dilip Shanghvi, Managing Director, Sun Pharmaceutical.
Reacting on the quarter performance, Prathamesh Masdekar, Research Analyst, StoxBox, said, “The company continues to report strong performance across key markets, aided by 10 new product launches during the quarter in the Indian market. Further, Sun Pharma’s specialty R&D pipeline includes five molecules undergoing clinical trials. The company’s API business benefits from vertical addition and continuity of supply chain for formulations business. Further, the company will also actively look for other new investment avenues for growth across all business segments in the coming years and we remain positive on the company.”