Sun Pharma Q2 profit up 28% on strong domestic, emerging mkts performance

India’s largest drug-maker Sun Pharmaceutical Industries posted a 28 per cent year-on-year (Y-o-Y) growth in its consolidated profit after tax (PAT) at Rs 3,040.3 crore for Q2FY25, while revenue from operations during the period grew by 10.5 per cent to Rs 13,264.2 crore. The increase in the net profit can be attributed to market share gains, volume-led growth, and good performance in domestic and emerging markets.

 

Sequentially, revenue from operations grew by 5.09 per cent, whereas PAT grew by 7.2 per cent. The firm’s Ebitda (earnings before interest, tax, depreciation, and amortisation) rose by 23.6 per cent year-on-year (Y-o-Y), reaching Rs 4,292.96 crore.

 

 

Profit exceeded Bloomberg estimates by 3.6 per cent, while revenue fell by 0.43 per cent.

 

Sun Pharma's agreement with Philogen to commercialise Fibromun also expands its dermatology portfolio. Dilip Shanghvi, chairman and managing director (CMD) of Sun Pharma, stated: “Sun has recently strengthened its specialty pipeline through an agreement with Philogen for commercialising 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 the market.”

 

In Q2FY25, India formulation sales stood at Rs 4,265.2 crore, growing by 11 per cent Y-o-Y, which accounted for roughly 32 per cent of the total consolidated sales. The company launched 14 new products in India this quarter. For the first half, sales stood at Rs 8,409.7 crore, growing by 13.6 per cent Y-o-Y.

 

The sales for US formulations reached $517 million in Q2FY25, growing 20.3 per cent Y-o-Y, and accounting for 33 per cent of total consolidated sales. For the first half of FY25, sales totalled $983 million, reflecting a 9.1 per cent growth Y-o-Y.

 

In emerging markets, formulation sales grew 3.2 per cent Y-o-Y, representing about 18 per cent of total consolidated sales. For the first half, sales were $577 million, growing by 5.9 per cent compared to the same period last year.

 

In Q2FY25, formulation sales in rest of the world (ROW) markets — excluding India, the US, and emerging markets — were $199 million, down by 3.5 per cent Y-o-Y. This segment accounted for approximately 13 per cent of total consolidated sales. For the first half, ROW declined by 3.2 per cent Y-o-Y. 

 

Speaking on this, Shanghvi said: “Formulation revenues in the rest of the world were lower by 3.5 per cent due to price cuts in Japan, as mentioned in the previous quarter. We expect this pressure to flow through next quarter's performance.”

 

This quarter, external sales of APIs (active pharmaceutical ingredients) reached Rs 533.8 crore, growing by 7.4 per cent Y-o-Y. For the first half, API sales stood at Rs 1,028.4 crore, experiencing a slight decline compared to the previous year. The API business supports vertical integration and ensures a reliable supply chain for the formulations business, with a focus on increasing API supply for captive consumption of key products.

 

The consolidated R&D (research and development) investments for the quarter were at Rs 793 crore, representing 6 per cent of sales, compared to Rs 773.4 crore in Q2FY24.

 

Sun Pharma has a comprehensive product portfolio in the US, with 538 approved ANDAs (abbreviated new drug applications) and 105 pending submissions, including 28 tentative approvals. Additionally, the portfolio comprises 51 approved NDAs, with 13 awaiting FDA approval. During the quarter, three ANDAs were filed, and one ANDA approval was received, along with one NDA approval.

 

The firm’s stock rose by 2.28 per cent to Rs 1,902.65 a piece on the BSE. The results came during market hours on Monday.