Sun Pharma Q4 Results 2024: Net Profit Rises 34% to ₹2,654.5 Crore, Final Dividend of ₹5 Announced

Synopsis

Sun Pharmaceutical Industries Ltd. announced a consolidated net profit of ₹2,654.5 crore for the quarter ending in March, exceeding analysts' expectations and marking a 34% increase from the same period in the previous year.

Quarter Result Performance

Sun Pharmaceutical Industries, India's largest domestic drug manufacturer, announced a significant 33.8% increase in its consolidated net profit for the quarter ending March 21, 2023 (Q4), reaching ₹2,654.58 crore. In the corresponding period of the previous financial year (FY23), the pharmaceutical company had reported a net profit of ₹1,984.47 crore. Sequentially, the profit witnessed a modest 5.2% growth from ₹2,523.75 crore recorded in the preceding quarter (Q3).

The company's total revenue from operations for Q4 was ₹11,982.9 crore, a 9.6% increase compared to ₹10,930.67 crore in Q4 of the previous year. However, revenue declined by 3.2% sequentially, from ₹12,380.7 crore reported in Q3.

The company's Ebitda for the fourth quarter ended March 31, 2024, increased by 8.3% year-over-year, reaching ₹3,034 crore. This result closely matched the anticipated figure of ₹3,032 crore.

Despite a slight 30 basis point decrease from the previous year, the Ebitda margin experienced a 70 basis point increase, rising from an estimated 24.6% to 25.3%.

India's formulation sales witnessed a 10.2% YoY surge, amounting to ₹3,707 crore, accounting for 31.4% of the overall consolidated sales. Sun Pharma's US formulation sales surged by 10.9% to $476 million compared to the previous year, while the emerging markets formulation sales increased by 10.8% to $245 million for the quarter.

The pharmaceutical company achieved a consolidated net profit of ₹9,576.38 crore for the fiscal year, representing a 13% increase compared to the ₹8,473.58 crore reported at the end of the previous fiscal year. Revenue from operations grew by 10.5% to ₹48,496.85 crore, up from ₹43,885.68 crore at the end of the prior fiscal year.

India's formulation sales for FY24 amounted to ₹14,889.3 crore, exhibiting a 9.5% growth. United States sales surged by 10.1% to reach $1,854 million. Sales in the rest of the world experienced a 7.8% growth, reaching $811 million. Formulation sales in emerging markets saw a 5.9% increase, reaching $1,041 million.

The board of the company also recommended a final dividend of ₹5 per equity share of ₹1, for the financial year 2023-24.

Sun Pharmaceutical Industries Ltd. Commentary

Speaking on the quarter results, Chairman and Managing Director Dilip Shanghvi said, "During FY24, two of our businesses surpassed $1 billion in annual sales, namely Global Specialty and Emerging Markets. This achievement of critical mass in key markets is a testimony to several years of hard work put in by respective teams. We shall continue to build our specialty portfolio and invest further to gain scale across our businesses.”