Sun Pharma Q3 Results: US formulation sales miss expectations but margin expands

Shares of Sun Pharma Ltd., India’s largest drugmaker gained as much as 1.3% after declining as much as 2% when it reported its December quarter results. The stock gained despite its US formulation sales missing expectations.

US formulation sales stood at $474 million during the quarter, which was lower than the expectations of $516 million. On a year-on-year basis, the US formulation sales were down 0.7%.

Sun Pharma’s sales for the December quarter increased by 10.5% from last year to ₹13,675 crore.

Adjusted for a forex gain, the company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹4,192 crore, a growth of 25% from last year’s figure of ₹3,353 crore. The base quarter had a forex loss of ₹124 crore.
EBITDA margin for the quarter expanded by over 300 basis points to 30.6% from 27.1% during the same period last year.Sun Pharma’s India formulation sales increased by 13.8% from last year to ₹4,300 crore.

External sales of API during the quarter grew by 21.8% from last year to ₹567.8 crore.

Formulation sales in Emerging Markets stood at $277 million, a growth of 10.1% from last year.

Sun Pharma has also declared a dividend of ₹10.5 per share.

Shares of Sun Pharma ended 0.8% higher on Friday at ₹1,752.8.