Sun Pharma Q2 results: Consolidated profit beats estimates, rises 5%

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₹2,375.5 crore for the July-September quarter versus ₹2,262.22 crore in the same period last year. Meanwhile, its revenue rose over 11 percent YoY to ₹12,192 crore in the quarter under review as against ₹10,952.3 crore in the year-ago period. The firm beat Street estimates on both the profit as well as revenue front.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter rose nearly 8 percent on year to ₹3,179.30 crore as compared to ₹2,956.5 crore in the year-ago period. However, the operating margin contracted by 91 basis points to 26.08 percent in Q2 against 27 percent in the year-ago period. The firm also informed that it posted an 11 percent YoY rise in both its gross sales as well as India formulation sales to ₹12,003.1 crore and ₹3,842.5 crore, respectively, in the September quarter.

Meanwhile, emerging market formulation sales were up 9.4 percent to $284 million in Q2. Also, US formulation sales came in at $430 million, up 4.2 percent YoY and global specialty sales were $240 million, up 19.3 percent in Q2FY24. Its total expenses during the quarter rose 12.4 percent YoY to ₹9,695 crore, from ₹8,625 crore a year ago.

Raw material costs, however, declined to ₹1,665 crore, from ₹2,017 crore a year ago. Furthermore, the company's investments towards research and development were ₹773 crore or 6.4 percent of sales in the quarter as against ₹571 crore or 5.3 percent of sales in Q2FY23. The company filed 3 Abbreviated New Drug Application (ANDAs) in the quarter and received approvals for 8 ANDAs.