Sun Pharma Q4 Results: US Sales Miss Analyst Estimates, Profit Aided by Higher Other Income

Sun Pharmaceuticals Ltd., India’s largest drug manufacturer, reported its fourth-quarter financial results, revealing US business sales of $476 million for the March quarter. Although this represents a 10.9% year-on-year increase in US formulation sales, it fell short of the lowest analyst estimate, which projected US sales to range between $485 million and $531 million. The US formulation sales contributed to 33.5% of Sun Pharma’s consolidated topline for the quarter.

Despite the lower-than-expected US sales, Sun Pharma reported a net profit of ₹2,654.5 crore for the quarter, exceeding the poll estimate of ₹2,377.2 crore. This higher profit was significantly aided by a 62% surge in other income, which increased to ₹606 crore from ₹373 crore in the same quarter last year.

The company’s revenue for the quarter stood at ₹11,983 crore, slightly below the KANISHKSOCIALMEDIA poll estimate of ₹12,316.8 crore but showing a year-on-year growth of 9.6%. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 8.3% from last year to ₹3,034 crore, aligning closely with expectations of ₹3,032 crore.

Sun Pharma’s EBITDA margin for the quarter was 25.3%, surpassing the 24.6% estimate by 70 basis points, though it was down 30 basis points from last year.

India formulation sales for the March quarter grew by 10.2% year-on-year to ₹3,707 crore, accounting for 31.4% of Sun Pharma’s total consolidated sales.

During the financial year 2024, two of Sun Pharma’s businesses achieved annual sales surpassing $1 billion, namely Global Specialty and Emerging Markets. Chairman and Managing Director Dilip Shanghvi stated, “We shall continue to build our specialty portfolio and invest further to gain scale across our businesses.”

The company’s specialty R&D pipeline includes six molecules currently undergoing clinical studies. In the US market, Sun Pharma’s portfolio includes 104 Abbreviated New Drug Applications (ANDAs) awaiting approval from the USFDA, with 29 of these being tentative approvals.

Following the earnings announcement, Sun Pharma shares initially declined but then surged to the day’s high, currently trading 1% higher at ₹1,557.1.

For comprehensive market coverage, business news, and real-time stock market updates, visit Kanishk Social Media.

 If you like this story, share it with a friend!