InvestorQ : How did Sun Pharma manage to double its profits in the Dec-20 quarter?
Aashna Tripathi made post

How did Sun Pharma manage to double its profits in the Dec-20 quarter?

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Aditi Sharma answered.
4 weeks ago
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You are right that Sun Pharma did report a doubling of its Q3 PAT to Rs.1,852 crore on the back of substantial better cost management during the quarter. Even in terms of revenues, Sun Pharma reported 8.36% growth in revenues for the Dec-20 quarter on an overall consolidated basis at Rs.8,837 crore.

Actually, Sun Pharma saw top line traction across various verticals. The growth was also good across geographies. Among the various verticals of the company, Sun Pharma witnessed good traction in top line growth across its geographies with the principal American market demand showing a sharp revival in the quarter and leading the way.

Consolidated operating profits were up by 45% to Rs.1,874 crore in the Dec-20 quarter. As a result of this boost to the operating profits in the quarter, the OPM expanded sharply from 15.87% in Dec-19 quarter to 22.21% in the Dec-20 quarter. Clearly, the sales growth and the control on costs had worked in favour of the company.

Even the bottom line growth was fairly attractive. Consolidated net profits actually grew 103% to Rs.1,852 crore as the operational edge combined with lower tax liability in the Dec-20 quarter boosting the bottom line. The net margins nearly doubled from a level of 11.20% in Dec-19 quarter to 20.96% in the Dec-20 quarter, a good show overall.

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