-
Revenue: INR132,642 million for Q2 FY25, up 10.5% year-on-year.
-
EBITDA: INR39,390 million for Q2, a 23.9% increase over Q2 last year.
-
EBITDA Margin: 29.6% for Q2 FY25, compared to 26.1% in Q2 FY24.
-
Net Profit: INR30,402 million for Q2 FY25, up 28% year-on-year.
-
EPS: INR12.7 per share for the quarter.
-
Net Cash: USD2.6 billion as of September 30, 2024.
-
India Formulation Sales: INR42,652 million for Q2, a growth of 11% year-on-year.
-
US Sales: USD517 million for Q2, up 20.3% year-on-year.
-
Emerging Markets Revenue: USD293 million for Q2, up 3.2% year-on-year.
-
R&D Investment: INR7,929 million for Q2 FY25, 6% of sales.
-
Global Specialty Sales: USD286 million for Q2, up 19.2% year-on-year.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Sun Pharmaceuticals Industries Ltd (BOM:524715) reported a 10.5% increase in sales for Q2 FY25 compared to Q2 FY24, indicating strong business growth.
-
The company's EBITDA for Q2 FY25 increased by 23.9% year-over-year, with EBITDA margins improving to 29.6%.
-
Net profit after tax for Q2 FY25 rose by 28% over the previous year, showcasing robust financial performance.
-
The India business recorded an 11% growth in sales, maintaining its position as the market leader with an 8.1% market share.
-
The US business saw a 20.3% increase in sales over Q2 last year, driven by strong performance in the specialty segment.
Negative Points
-
Other expenses increased to 32.3% of sales, attributed to higher selling and distribution costs.
-
Revenue in the Rest of the World (ROW) markets declined by 3.5% over Q2 FY25, impacted by Japan price cuts.
-
There is a delay in the start of some clinical studies, affecting R&D spending, which is below the company's guidance.
-
The company faces ongoing litigation related to the Leqselvi product, which could impact its launch timeline and profitability.
-
The emerging markets segment showed only a modest growth of 3.2% over Q2 last year, with currency fluctuations affecting performance.
Q & A Highlights
Q: Can you provide an update on the R&D spending, given the delays in clinical trials and the revised guidance of 7% to 8% for the full year? A: Dilip Shanghvi, Managing Director, explained that the new guidance is based on a reassessment of the required spending for the second half of the year. The first half's spending was at 6%, and to reach the annual guidance, it needs to increase accordingly. However, further delays could keep R&D spending lower than anticipated.