Q2 Results: Sun Pharma's Sales Up Across Markets, Net Profit Surges 5% To Rs 2,375 Cr

The Indian pharma giant Sun Pharmaceutical Industries on Wednesday reported its financials for the second quarter ending September 30th, 2023. The company's gross sales jumped by 11 per cent year on year (YoY) in quarter two of the financial year 2024 (Q2FY24) at Rs 12,003 crores versus Rs 10,809 crore in the same quarter of the previous fiscal. 

The drugmaker reported a profit after tax of Rs 2,375 crore in the September quarter up by 5 per cent against Rs 2,262 crore in the corresponding quarter last year. 

Earning before interest tax depreciation and amortization (EBITDA) surged by 7.5 per cent YoY in Q2FY24 to Rs 3,179 crores with EBITDA margins dipping to 26.1 per cent versus 27 per cent in Q2FY23. 

The company's total expenses grew by 12.4 per cent in Q2FY24 to Rs 9,695 crore against Rs 8,625 crore in the same quarter last year. 

On the upcoming promising drugs for the drugmaker Dilip Shanghvi, Managing Director, Sun Pharmaceuticals said that US FDA’s acceptance of deuruxolitinib NDA for treatment of moderate to severe alopecia areata marks an important milestone. He further said that there are limited treatment options for alopecia areata and deuruxolitinib should make a meaningful difference in patient lives, once approved. 

"Similarly, another late-stage candidate Nidlegy will potentially complement our Odomzo franchise. Nidlegy’s recent positive phase-3 data in patients with locally advanced fully resectable melanoma positions us to provide patient solutions across a broad spectrum of skin cancers,” Shanghvi added. 

Domestic Sales Vs Exports

Sun Pharmaceutical holds the biggest market share in the Indian pharmaceutical market, the company recorded an 11.1 per cent jump YoY in its domestic sales to Rs 3,842 crores with the domestic sales accounting for 32 per cent of its total consolidated revenue. 

The drugmaker's US sales also grew by 4.2 per cent YoY to USD 430 million over Q2 last year and accounting for over 30 per cent of total consolidated sales.

Formulation sales in Emerging Markets were recorded at USD 284 million for Q2, a growth of 9.4 per cent over Q2 of the previous fiscal whereas drug sales in Rest of World (ROW) markets were USD 206 million in Q2FY24, up by 13.7 per cent over Q2 of last year. 

R&D Investments & Pipeline

The company's research and development (R&D) investments also rose to Rs. 773 crore to 6.4 per cent of its sales compared to Rs 571 million (5.3 per cent of sales) in the corresponding quarter of the previous year.

The company in a statement said that its speciality R&D pipeline includes 6 molecules undergoing clinical trials. The company said that in the September quarter, it has filed three new drug applications with the USFDA and has received approval of eight products. Furthermore, it said that 93 ANDAs await US FDA approval, including 28 tentative approvals.