Sun Pharma Q2 Results: Net profit rises 28% YoY to ₹3,040.16 crore

Sun Pharma Q2 Results: Sun Pharmaceutical Industries Ltd on Monday reported an 28% year-on-year rise in its consolidated net profit for the fiscal's second quarter ended September (Q2FY25) to ₹3,040.16 crore. The company had reported a profit of ₹23,755.1 crore in the year-ago period. Sequentially, the consolidated net profit was up 7.2%.

The pharma company's consolidated revenue from operations stood at ₹13,264.22 crores during the quarter ended September from ₹12,003.11 crore in Q2FY24, a year-on-year jump of nearly 10.5%.

On Monday, Sun Pharma share price after consolidating around the 50 EMA for the past two sessions, prices have rebounded sharply with strong volumes. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the daily chart shows a higher bottom formation, suggesting potential movement towards the ₹2,000 mark, with key support at ₹1,850. On Monday, Sun Pharma share price ended 2.24% higher at ₹1,902 apiece on the BSE. 

For the quarter, EBITDA reached ₹3,939 crore, reflecting a 24% year-over-year increase, with an EBITDA margin of 29.6%. In India, formulation sales surged 11% year-over-year to ₹4,265 crore, representing approximately 32% of the total consolidated sales.

For the first half of the year, total sales amounted to ₹8,410 crore. In the second quarter, US formulation sales rose by 20% year-over-year to $517 million, making up 33% of total sales. Sales from emerging markets reached $293 million for the September quarter, marking a 3.2% year-over-year growth.

Conversely, formulation sales in the Rest of World (ROW) markets declined by 3% year-over-year to $199 million in the second quarter of FY25. Regarding Active Pharmaceutical Ingredients (API), external sales increased by 7% year-over-year to ₹534 crore in the second quarter of the reporting period.

“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 company said.

Sun Pharma's R&D expenses totaled ₹792.9 crore, or 6% of sales for the quarter, as the company advances its worldwide specialty pipeline. This includes the recent approval by the US FDA of Leqselvi, a therapy for severe alopecia areata, according to the company's results notes.

“Sun has recently strengthened its specialty pipeline through an agreement with Philogen for commercializing late stage candidate Fibromun, upon approval. With Fibromun, our product basket for dermatologists has expanded further. We shall continue to leverage our strong cash position to strengthen our pipeline with products that are close to market,” said Dilip Shanghvi, Chairman and Managing Director of the Company.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.