Result-Analysis-Elite-Wealth.
Result Analysis: Sun Pharmaceutical Ltd. Result Update Q2FY22
Particulars (In ₹. Cr) Q2FY22 Q1FY22 Q2FY21 QoQ % YoY%
Revenue from Operation 9625.9 9718.7 8553.1 -0.95% 12.54%
Other Income 222.8 152.5 255.7 46.10% -12.87%
Total Income 9848.7 9871.2 8808.8 -0.23% 11.81%
Material cost 1584.9 1562.1 1459.8 1.46% 8.57%
Other Expenses 5977.4 5873.8 5431.9 1.76% 10.04%
Material cost as percentage of Total Income 16.46% 16.07% 17.07% 2.44% -3.53%
EBITDA 2630 2,772 2192 -5.12% 19.98%
EBITDA Margin 27.32% 28.52% 25.63% -4.20% 6.61%
Profit After Tax 2,047.00 1,444.17 1,812.79 41.74% 12.92%
PATM (%) 21.27% 14.86% 21.19% 43.11% 0.34%
Basic EPS (in Rs. ) 8.5 6 7.6 41.67% 11.84%
Geographical Revenue Q2FY22 Q1FY22 Q2FY21 QoQ % YoY%
India Formulation 3187.8 3308.3 2531.1 -3.64% 25.95%
US Formulation 2677.3 2800 2491.5 -4.38% 7.46%
Emerging Market 1800.5 1605.2 1558.7 12.17% 15.51%
ROW Formulation 1392.6 1368 1336.28 1.80% 4.21%
Bulk 435.8 514.8 510.4 -15.35% -14.62%
Others 62.6 72.9 46.5 -14.13% 34.62%

Result Highlight: 

  • Sun Pharma Revenue was flat QoQ and rose 12.54% YoY to ₹ 9625 crore – better than the estimates of ₹ 8980 Crore. Other income fall87% YoY to ₹ 222.8 Crore.

  • Company reported EBITDA of ₹ 2630 crore vs ₹2192 crore same quarter last year Margin was flat at 32% from 28.52% last quarter.

  • Net profit rose 12.92% YoY to ₹2047 crore for the September quarter compared with ₹ 1812 crore in the same  quarter last

  • The company reported strong operating Cash flow of ₹ 4027 Crore and free cash flow of ₹3046 crore in Q2 FY22.

  • In US Market Company register a growth of 7.46% Y-o-Y.

  • Sun subsidiary Taro Pharmaceuticals resolved all matters in connection with the multi-year investigations by the Department of Justice, Antitrust Division and Civil Division (“DOJ”) into the United States generic pharmaceutical industry.

  • Dusa Pharmaceuticals, Inc. reached an agreement with the U.S. Department of Justice and an individual to resolve allegations relating to the sales, marketing and promotion of two of its products – Levulan and Blu-u, as extension of a Civil Investigation Demand for the period January 2010 to September 2017. The Company had made a provision of ₹1,563.6 Million for this settlement during the year ended March 31, 2020.

  • Taro posted Q2FY22 sales of US$ 132 million, lower by about 8% YoY and adjusted net profit of about US$ 25 million, lower by 45% over Q2 last year.

  • Consolidated R&D investment for Q2FY22 was ₹ 536 crore as compared to ₹ 612.7 crore for Q2 last year. The reduction is due to spill-over of certain clinical studies into subsequent quarters. For the first half, R&D expense was ₹1129 crore, or 5.9% of sales.

Management commentary: 

Dilip Shanghvi, Managing Director of the Company said, “Following our good Q1 performance, we have sustained the positive momentum in Q2 with a topline growth of 13% YoY, driven by a broad-based growth across multiple geographies. Our global specialty business has grown by 43% over Q2 last year. Ilumya has grown both YoY and sequentially. Our India business continues to do well with a growth of 26% YoY. We remain steadfast in our focus on growing our overall business and simultaneously strengthening our global specialty portfolio. The recent launch of Winlevi in US and Ilumya in Canada is a step forward in this direction.

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