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Published: May 27, 2023
Updated: May 27, 2023

Sun Pharma Reports Impressive Q4 Results, Surpasses Estimates with Net Profit of Rs 1,984 Crore

Sun Pharmaceutical Industries, a leading pharmaceutical company, has announced its financial results for the fourth quarter, ending in March. The company's net profit of Rs 1,984.5 crore has exceeded the estimated figure of Rs 1,808.1 crore, according to a poll.

Rebounding from Loss:

After reporting a net loss of Rs 2,227.38 crore in the same quarter last year, primarily due to a one-time loss of Rs 3,935.7 crore, Sun Pharma has made a remarkable recovery.

Steady Revenue Growth:

Sun Pharma achieved a 15.7% year-on-year increase in revenue for the fourth quarter, reaching Rs 10,930.6 crore. This growth can be attributed to double-digit growth across markets, robust sales in the domestic formulations business, and significant sales from the generic of Revlimid in the US market.

Operational Performance:

While the company's operational performance improved, it was slightly impacted by higher research and development costs for Concert Pharma post-acquisition and the repercussions of the US FDA's ban on its export-oriented Halol unit. The EBITDA margin for the quarter was 25.6%, a slight increase from the previous year.

Strategic Investments:

Sun Pharma's management plans to increase research and development investments in the specialty and US generic business, aiming for 7-8% of sales in FY24.

Outlook remains positive :

The company expects high single-digit growth in topline for FY24. Despite the temporary pause in shipments from its Mohali unit due to corrective action directives from the US FDA, Sun Pharma foresees gradual and timely resumption of product selling from the facility in the coming months.

Sun Pharma has delivered a strong performance in Q4, surpassing market expectations with a net profit of Rs 1,984 crore. With steady revenue growth, improved operational performance, and strategic investments in key areas, the company remains well-positioned for future success.