News

Published: January 31, 2024
Updated: January 31, 2024

Sun Pharma Shines Bright with Robust Q3 Performance

Sun Pharmaceutical Industries Ltd has reported a stellar performance in the third quarter of fiscal year 2024, witnessing a 17% year-on-year surge in net profit, reaching Rs 2,524 crore. The stock has soared to a one-year high, reflecting the company's robust financial health.

Key Financial Highlights:

In Q3 FY24, the company's consolidated profit after tax stood at Rs 2,523.75 crore, a notable increase from Rs 2,166.01 crore in the same period last fiscal. An interim dividend of Rs 8.50 per share for FY24 has been declared by the board, marking a positive outlook compared to the previous year.

Market Dynamics:

Sun Pharma's impressive performance is attributed to strong sales in key markets, particularly the United States. Sales of formulations in India witnessed an 11.4% increase, contributing to approximately 31% of the total sales. Formulation sales in the US recorded a growth of 13.2%, constituting over 33% of the total sales.

Strategic Moves and Outlook:

Experts expressed satisfaction with the broad-based growth, especially in Global Specialty. He highlighted the anticipation of the European Medicines Agency (EMA) filing for Nidlegy in the coming months, expecting significant expansion in the onco-derm franchise in Europe upon approval.

Segment-wise Analysis:

● Indian Formulation Sales: Rs 3,778.5 crore, up 11.4%.
● US Formulation Sales: $477 million, a growth of 13.2%.
● API Sales: External sales of Active Pharmaceutical Ingredients were Rs 466.1 crore, with a 9.6% decrease. The company emphasizes increasing API supply for captive consumption of key products.

Stock Performance:

The stock witnessed a remarkable 4.88% jump, reaching a one-year high level of Rs 1,438.50, signalling positive investor sentiment and confidence in Sun Pharma's future prospects.

Sun Pharma's Q3 results underscore its resilience and strategic positioning in the pharmaceutical industry. With a focus on global expansion, product innovation, and consistent growth, the company is poised for continued success. Investors and stakeholders can look forward to sustained value creation in the pharmaceutical giant's journey ahead.