Sun Pharma Q1 PAT misses estimates
₹2,022.5 crore for the quarter ended 30 June, 1.9% less than the net profit of ₹2,060.9 crore reported in the year-ago quarter. Profit came lower than analysts’ consensus estimate of ₹2,164.5 crore as indicated by Bloomberg. However, the company said its adjusted net profit (excluding the exceptional items) for Q1FY24 at ₹2,345.4 crore was up 13.8% over the same quarter last year.
This was better than consensus estimates. Notably, it was the exceptional items worth ₹322.87 crore pertaining to impairments, forex losses, relocation of acquired Alchemee operations from California to New York and certain other acquisition related expenses that impacted reported net profit. The company’s revenues from operations at ₹117,851.5 crore rose 10.7% over last year.
These were driven by the company’s strong sales growth registered in key US markets. The US formulation sales of the company, accounting for over a third of total consolidated sales at $471 million, grew 12% year-on-year. In rupee terms at ₹3,870.87 crore, the US formulation sales were up 19% year-on-year.
Although the company’s US subsidiary Taro’s Q1FY24 sales at $159 million, could grow only 1.4% YoY, analysts feel that ramp up in the specialty products sales as that of psoriasis treatment drug Ilumya and acne treatment drug Winlevi lifted the sales. The contributions from new launches such as those of multiple myeloma treatment drug Revlimid generics are also likely to have boosted the company’s overall show. Global specialty sales for the company at $232 million, grew 21% year-on-year and the company said it accounted for 16.2% of Q1FY24 sales.
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