Taro a miss on all fronts
News: Sun Pharma’s Subsidiary Taro Pharma’s Q2FY22 numbers was a miss on all fronts mainly due to challenging market trend in US where price deflation and pressure persists. Revenues de-grew 7.6% YoY to US$132 million. EBITDA margins declined 825 bps YoY to 24.5% mainly due to lower gross margins while EBITDA de-grew 31% YoY to US$32.3 million. Net profit de-grew 48% YoY to US$23.3 million. Taro's estimated contribution is 10% to revenue and 11% to EBITDA of Sun Pharma in Q2FY22.
Views: Taro's performance has a substantial bearing on Sun's Consolidated numbers albeit on reducing scale. Although Sun continues to focus on specialty products in the US, below par Taro numbers could weigh on sentiments