Sun Pharma Q2 Result, FY 2019-20

Sun Pharmaceuticals Industries Ltd released its financial results for Q2FY20 on November 7, 2019.

Facts –

An upsurge in revenue by 16 % to Rs. 7,949 crore (YoY)

EBITDA is now at Rs, 1,616 crores, up by 12 % (YoY)

Net Profits for the quarter are Rs. 1,064 crores, with a net profit margin at 13.4%

Inference –

At the forefront, the entity has performed well on a YoY basis. For the Q2FY 19, it reported a loss of Rs.269.60 crore, which was due to an extraordinary event (Modafinil antitrust litigation). The revenue front also remains strong on a YoY basis. The Indian sales grew more on a YoY basis (close to 35%) viz a viz the US Formulations. So one may reckon that the entity has been successful in the Indian Markets this time. However, one must not overlook the QoQ analysis, which poses slight contrarian results. The revenue, as well as Profit, was higher in Q1 for Sun Pharma. To be precise, there has been a fall in profits by 23.3 % with respect to Q1 of the current financial year. Thereby QoQ analysis mellows down the YoY win for the company. 

Management Corner – 

Sun Pharma is said to be India’s top pharmaceutical company with an 8.2% market share. The entity seems to have plans to grow globally. This is based on the recent launch of Cequa (a drug to treat eye ailments) in the USA. Prior to this, ILUMYA was another drug launched and is currently earing a good profile.  

Analyst: Abhishek Sethi 

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