Sun Pharma Q3 Profit Jumps 19% YoY, Declares ₹10.50 Dividend

31 Jan 2025 , 10:17 PM

Sun Pharmaceutical Industries Ltd recorded net profit at ₹3,033 crore for Q3 FY25, representing an 18.6% yoy growth compared with ₹2,557.6 crore registered in the same period last year.

Revenue from operations grew 10.5% yoy to ₹13,675.4 crore, compared with ₹12,381 crore registered for the same period in Q3 FY24, boosted by high growth rates across key markets. EBITDA rose 25% YoY to ₹4,192.2 crore. EBITDA margin improved at 30.7% versus 27.1% a year ago and reflects better cost efficiencies and improvements in profitability.

Gross sales for the quarter were ₹13,436.9 crore. Growth was recorded across all business segments:

• Domestic formulation sales rose 13.8% YoY at ₹4,300.4 crore, recording strong domestic demand.
• US formulation sales declined slightly by 0.7% to ₹47.4 crore, reflecting a marginal dip in the US market.
• Global specialty sales hit $37 crore, including a $4.5 crore milestone payment, and core specialty sales grew 17.5% YoY and now constitute 21% of total revenue.
• Emerging markets formulation sales went up by 10.1% YoY to ₹27.7 crore, which depicted steady demand in international markets.
• RoW markets grew 21% YoY to ₹25.9 crore, depicting increased global reach.

Investments in R&D were at ₹845 crore. The figure stood higher than the Q3 FY24 of ₹824.5 crore, with the company investing in innovative products. Adjusted net profit excluding exceptional items went up by 24.1% YoY at ₹3,219.6 crores, with strong operational performance and cost management.

An interim dividend of ₹10.50 on the face value per share for FY25 has been declared. The following dates are declared for this purpose:

• Record date: February 6, 2025, which would determine who gets this dividend.
• Dividend declared for the purpose of payment on or before February 20, 2025.

Chairman & Managing Director Dilip Shanghvi observed that:

• The specialty business sales now form over 20% of the company’s total sales and are seeing significant growth
• Market share in India has expanded with the support of volume growth
• Emerging markets were quite resilient with a currency fluctuation across regions
• All business segments are well positioned for further growth and expansion.

This results in steady revenue growth, margin expansion, and contributions from the global specialty business. So far, Sun Pharma has managed to stay on the growth path to sustained long-term growth and pharmaceutical market leadership.