StoxBox: Views on Sun Pharma Industries Ltd. Q4 FY24 Result

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The pharma giant reported strong financial results in Q4FY24, supported by robust performance in the US and domestic markets. The revenue growth was majorly led by the US market in the March quarter, with the global speciality business continuing to increase its share in the overall revenues. The company’s two businesses surpassed $1 billion in annual sales in FY24, namely Global Specialty and Emerging Markets. This achievement of critical mass in key markets has been a testimony for several years. The company continues building a speciality portfolio and investing further to gain scale across businesses. The company’s API business continues to focus on increasing API supply for captive consumption of critical products. We will keenly eye the management commentary on new product launches, US formulations (including Taro), business growth, speciality R&D pipeline, and domestic business. Further, the company will actively look for other new investment avenues for growth across all business segments in the coming years.

Sun Pharma Industries Ltd. Q4FY24 Result First Cut – Net Profit Beats Street Estimates
Company reported revenue growth of 9.6% YoY / down 3.2% QoQ to Rs. 11,983 crores and was below market expectations of Rs. 12,233 crores.
Domestic formulations business grew 10.2% YoY, further aided by 10.9% and 12.5% annual growth in US formulations (including Taro) and Rest of World (ROW) markets, respectively.
Sun Pharma ranked no. 1 and holds an 8.5% market share of over Rs. 1,970 billion IPM, per AIOCD AWACS MAT March 2024 report. For Q4FY24, the company launched nine new products in the Indian market.
EBITDA increased 9.3% YoY / down 7.8% QoQ to Rs. 3,092 crores, while EBITDA margin stood at 25.8% (below 8bps YoY / down 128bps QoQ) in Q4FY24, mainly on account of an increase in employee cost (+10bps YoY) and other expenses (+342bps YoY).
Profit after Tax stood at Rs. 2,659 crores (up 34.1% YoY / up 3.8% QoQ) in Q4FY24, above market expectations of Rs. 2,441 crores. PAT margin rose to 22.2% versus 20.7% in the previous quarter.
R&D investments for Q4FY24 stood at Rs. 900 crores (7.5% of sales), compared to Rs. 825 crores in Q3FY23.
The company’s board has declared a final dividend of Rs. 5.0 per share for FY24.