Pharma major Sun Pharma posted a 5 percent year-on-year (YoY) rise in its consolidated net profit to ₹2,375.5 crore for the July-September quarter versus ₹2,262.22 crore in the same period last year.
Meanwhile, its revenue rose over 11 percent YoY to ₹12,192 crore in the quarter under review as against ₹10,952.3 crore in the year-ago period.
The firm beat Street estimates on both the profit as well as revenue front.
Earnings before interest, taxes, depreciation, and amortization (EBITDA), for the quarter, rose nearly 8 percent on year to ₹3,179.30 crore in Q2 as compared to ₹2,956.5 crore in the year-ago period. However, the operating margin contracted by 91 basis points to 26.08 percent in Q2 against 27 percent in the year-ago period.
The firm also informed that it posted an 11 percent YoY rise in both its gross sales as well as India formulation sales to ₹12,003.1 crore and ₹3,842.5 crore, respectively, in the September quarter. Meanwhile, emerging market formulation sales were up 9.4 percent to $284 million in Q2.
Also, US formulation sales came in at $430 million, up 4.2 percent YoY and Global specialty sales were $240 million, up 19.3 percent in Q2FY24.
Its total expenses during the quarter rose 12.4 percent YoY to ₹9,695 crore, from ₹8,625 crore a year ago. Raw material costs, however, declined to ₹1,665 crore, from ₹2,017 crore a year ago.
Furthermore, the company’s investments towards research and development were ₹773 crore or 6.4 percent of sales in the quarter as against ₹571 crore or 5.3 percent of sales in Q2FY23.
The company filed 3 Abbreviated New Drug Application (ANDAs) this quarter and received approvals for 8 ANDAs this quarter.
Moreover, for Q2 FY24, external sales of API (Active Pharmaceutical Ingredients) were at ₹497.2 crore, up by 5.1 percent YoY. “Our API business imparts benefits of vertical integration and continuity of supply chain for our formulations business. We continue to focus on increasing API supply for captive consumption for key products,” the firm stated.
The stock rose as much as 2.3 percent to its intra-day high of ₹1114.25 post the earnings.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!
Download The Mint News App to get Daily Market Updates.
Updated: 01 Nov 2023, 02:09 PM IST