Sun Pharmaceutical Industries Limited Q3 Results – Net Profit Jumps to 19.7%

Sun Pharmaceutical Industries Limited (Reuters: SUN.BO, Bloomberg: SUNP IN, NSE: SUNPHARMA, BSE: 524715) announced its financial results for the quarter ending December 31, 2023.

Sun Pharma Highlights of Q3FY24 Consolidated Financials

• Gross Sales: Q3 gross sales reached Rs. 121,569 million, indicating a notable growth of 9.5% year-on-year (YoY).
• India Formulation Sales: India formulation sales stood at Rs. 37,785 million, marking a robust increase of 11.4%.
• US Formulation Sales: US formulation sales amounted to US$ 477 million, showing a significant growth of 13.2%.
• Global Specialty Sales: Global specialty sales reached US$ 296 million, including a US$ 20 million milestone received in Q3. Excluding milestones, global specialty sales grew by 24.2%. These sales accounted for 19.2% of Q3FY24 sales.
• Emerging Markets and Rest of World Formulation Sales: Emerging Markets formulation sales were US$ 252 million, slightly lower by 2.3%, while Rest of World formulation sales stood at US$ 214 million, showing a robust growth of 12.9%.
• R&D Investments: R&D investments amounted to Rs. 8,245 million, compared to Rs. 6,702 million for Q3FY23.
• EBITDA: Q3FY24 EBITDA reached Rs. 34,768 million (including other operating revenues), marking a notable increase of 15.8%. The EBITDA margin for Q3 stood at 28.1%, compared to 26.7% during Q3FY23.
• Adjusted Net Profit: Adjusted net profit (excluding exceptional items) for Q3FY24 was Rs. 25,936 million, showing a substantial growth of 19.7% over the same period last year. Reported net profit for Q3FY24 was Rs. 25,238 million compared to Rs. 21,660 million during Q3FY23.

Additional Read: Q3 Results Dashboard

Highlights of 9M FY24 Consolidated Financials

• Gross Sales: Gross sales for the first nine months of FY24 reached Rs. 359,451 million, reflecting a growth of 10.4%.
• Segment-wise Sales: India formulation sales stood at Rs. 111,814 million, US formulation sales at US$ 1,378 million, Emerging Markets formulation sales at US$ 796 million, and Rest of World formulation sales at US$ 615 million.
• EBITDA: EBITDA for 9M FY24 reached Rs. 99,880 million, showing an increase of 12.9%, with an EBITDA margin of 27.4%.
• Net Profit: Net profit for 9M FY24 amounted to Rs. 69,218 million. Adjusted net profit, like-for-like, reached Rs. 73,145 million, marking a growth of 12.7%.

The Board of Directors, at its meeting today, approved these results and declared an interim dividend of Rs. 8.50 per share for FY24, compared to Rs. 7.50 per share for the previous year.

Dilip Shanghvi, Managing Director of the Company, expressed satisfaction with the broad-based growth, particularly in Global Specialty, and highlighted the anticipation for the EMA filing of Nidlegy, which is expected to significantly expand the company’s onco-derm franchise in Europe.

India Formulations:

• Sales of formulations in India for Q3FY24 reached Rs. 37,785 million, reflecting a robust increase of 11.4% compared to the same period last year. These sales accounted for approximately 31% of total sales. Over the first nine months of the fiscal year, sales amounted to Rs. 111,814 million, marking a growth of 9.2%.
• Sun Pharma holds the top position in the Indian pharmaceutical market with a market share of 8.5%, as per the AIOCD AWACS MAT Dec-2023 report. Additionally, as per the SMSRC MAT Oct-2023 report, Sun Pharma is ranked No.1 by prescriptions across 12 different doctor categories. In Q3FY24, the company launched 28 new products in the Indian market, showcasing its commitment to innovation and expansion.

US Formulations (including Taro):

• Formulation sales in the US reached US$ 477 million in Q3FY24, indicating a significant growth of 13.2% and accounting for over 33% of total sales. Over the first nine months, sales amounted to US$ 1,378 million, recording a growth of 9.8%.

Taro Pharmaceuticals:

• Taro reported net sales of $157 million for the quarter ended Dec-23, showing a growth of 12.9% primarily due to new launches and Gross-to-Net (“GTN”) adjustments. Excluding the impact of GTN adjustments, sales growth was in the high single digits. 
• Net profit for Q3FY24 reached US$ 20.2 million compared to US$ 7.3 million in Q3FY23. For the first nine months, sales amounted to US$ 464 million, up by 8.9% due to one-time GTN adjustments.
• Excluding these adjustments, sales growth was in the mid-single digits. Net profit for 9mFY24 was US$ 38.8 million compared to US$ 18.5 million in 9mFY23.
• Sun Pharma recently signed a definitive merger agreement with Taro to acquire the remaining stake that it doesn’t already own. The agreed price of US$43.00 per share is set to deliver a 48% premium to the unaffected price on May 25, 2023. The merger agreement is subject to various closing conditions, including shareholder approval.

Emerging Markets:

Formulation sales in Emerging Markets reached US$ 252 million for Q3FY24, reflecting a decrease of 2.3% and accounting for approximately 17% of total sales, primarily impacted by adverse currency movements. Over the first nine months, sales amounted to US$ 796 million, up by 4.5% over the same period last year.

Rest of World Markets:

Formulation sales in Rest of World (ROW) markets reached US$ 214 million in Q3FY24, marking a growth of 12.9% and accounting for approximately 15% of total sales. Over the first nine months, sales amounted to US$ 615 million, showing a growth of 9.7%.

Active Pharmaceutical Ingredients (API):

For Q3FY24, external sales of API were Rs. 4,661 million, representing a decrease of 9.6%. Over the first nine months, API sales amounted to Rs. 15,029 million, declining by 5.3%. The company continues to focus on increasing API supply for captive consumption for key products.

Research and Development (R&D) Update:

Consolidated R&D investment for Q3FY24 reached Rs. 8,245 million, accounting for 6.8% of sales, compared to Rs. 6,702 million for Q3FY23. Over the first nine months, R&D expense amounted to Rs. 22,776 million, or 6.3% of sales. This reflects the company’s ongoing commitment to innovation and research in the pharmaceutical sector.

Additional Check: Sun Pharma Share Price

About Sun Pharmaceutical Industries Limited

Sun Pharmaceutical Industries Limited (Sun Pharma) stands as the world’s fourth-largest specialty generics company, offering a diverse range of Specialty, Generics, and Consumer Healthcare products. As the largest pharmaceutical company in India and a leading generic player in the US and Global Emerging Markets, Sun Pharma holds a significant position in the global pharmaceutical landscape.

Sun Pharma’s high-growth Global Specialty portfolio encompasses innovative products in key therapeutic areas such as dermatology, ophthalmology, and onco-dermatology, contributing to over 16% of the company’s total sales. With vertically integrated operations, Sun Pharma ensures the delivery of high-quality medicines trusted by physicians and consumers in more than 100 countries worldwide.

The company boasts manufacturing facilities spread across six continents, enabling it to meet the diverse needs of global markets effectively. Sun Pharma takes pride in its multi-cultural workforce, representing over 50 nations, fostering an environment of diversity, collaboration, and innovation.

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Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/4108cd34-b465-406d-8a6e-d9f2e374c970.pdf