InvestorQ : What is your take on the quarterly numbers of Sun Pharma for the Dec-21 quarter?
prachi Patwardhan made post

What is your take on the quarterly numbers of Sun Pharma for the Dec-21 quarter?

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sara Kunju answered.
3 months ago
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Sun Pharma reported 11.6% growth in sales for the Dec-21 quarter at Rs.9,863 crore on a yoy consolidated basis. India formulation sales grew 15% yoy, US formulations grew 6% and emerging markets formulations grew 17% yoy. ROW saw marginal 3% growth in yoy sales in the Dec-21 quarter. India business was the fastest growing at 26% up move in first 9 months of FY22. The board of Sun Pharma has declared interim dividend of Rs.7 per share.

Sun Pharma

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 9,863.06

₹ 8,836.78

11.61%

₹ 9,625.93

2.46%

EBITDA (Rs cr)

₹ 2,052.65

₹ 1,874.20

9.52%

₹ 2,099.57

-2.23%

Net Profit (Rs cr)

₹ 2,058.80

₹ 1,852.48

11.14%

₹ 2,047.01

0.58%

Diluted EPS (Rs)

₹ 8.60

₹ 7.70

₹ 8.50

EBITDA Margin

20.81%

21.21%

21.81%

Net Margins

20.87%

20.96%

21.27%

Operating profits were up 9.5% at Rs.2,053 crore on yoy basis. EBITDA growth was up 8% at Rs.2,558 crore with EBITDA margins at a healthy 26.1% for the third quarter ended Dec-21. Sun Pharma now has 8.2% market share of the India business even as generic arm, Taro, struggles under the burden of price pressure in generics. Operating margins fell from 21.21% in Dec-20 quarter to 20.81% in Dec-21 quarter. OPM was 21 bps higher sequentially.

Profit after tax (PAT) was up 11.14% yoy at Rs.2,059 crore on operating gains transmission to the bottom line. In terms of long term traction, R&D expenses at Rs.547 crore were robust at more than 5% of sales. Sun Pharma has just repaid $254 million of debt, reducing solvency risk. The API business continues to be under pressure, but that has been the trend globally as tough price competition is taking its toll on the business.

PAT margins fell marginally by 9 bps from 20.96% in the Dec-20 quarter to 20.87% in the Dec-21 quarter. PAT margins were also lower on a sequential basis.

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