- 01 Feb 2022
- ICICIdirect Research
Sun Pharma numbers in line on the back of remunerative portfolioSUNPHARMA - 960 Change: -8.85 (-0.91 %)
News:Revenues grew 11.6% YoY to Rs.9863.1 crore. Indian formulations grew 15.1% YoY to Rs.3167.6 crore. US formulations grew to Rs.2971.8 crore, up 7.6% YoY. Emerging Markets business grew 18.8% YoY to Rs.1789.9 crore while RoW Markets business grew 4.2% YoY to Rs.1353.2 crore. API segment grew 9.2% YoY to Rs.531.8 crore. EBITDA margins declined just 80 bps and were at 26.4% on back of marginal dip in gross margins and higher other expenditure. Subsequently, EBITDA grew 8.3% YoY to Rs.2606.3 crore. Adjusted profit grew 11.1% YoY to Rs.2058.8 crore. Delta vis-à-vis EBITDA was mainly due to higher other income and lower interest expense being partially offset by higher tax expense.
Views: Sun Pharma’s Q3FY22 operational performance was in line with I-direct estimates with sustained momentum and good growth across businesses. India business continues to grow faster than market, leading to increase in market share. The company’s US generics front is going through calibrated product rationalisation, the specialty segment looks promising due to robust product pipeline, steady progress and for 9MFY22 has already crossed the previous full-year revenues. This metamorphic shift from generics to specialty and strong domestic franchise is likely to change the product mix towards more remunerative businesses by FY22. This would have positive implications for margins also as we expect faster absorption of frontloaded costs on the specialty front. We will be coming out with a detailed report soon.