Tuesday, November 3, 2020

Sun Pharma Q2 earnings beat the Street as profit surges 70% to Rs 1,813 crore

 


Drug major Sun Pharmaceutical Industries on November 3 reported a massive 70.4 percent year-on-year growth in consolidated profit driven by operating performance and tax credit, though forex loss limited growth.

Consolidated profit increased to Rs 1,813 crore in quarter ended September 2020, compared to Rs 1,064 crore in same period last year.

Sun Pharma in its BSE filing said tax gain (exceptional) for the quarter ended September 2020 was on account of creation of deferred tax asset amounting to Rs 288.28 crore arising out of subsequent measurement attributable to restructuring of an acquired entity.

The company had a forex loss of Rs 116.4 crore during the quarter, against forex gain of Rs 8.5 crore in Q2FY20, it added.



Consolidated revenue from operations grew by 5.3 percent year-on-year to Rs 8,553 crore in September quarter.

At the operating level, its earnings before interest, tax, depreciation and amortisation (EBITDA) in Q2 surged 22.5 percent to Rs 2,193.3 crore and margin expanded 360 bps to 25.6 percent compared to corresponding quarter of previous financial year.



Numbers were ahead of analysts' expectations for the quarter. Profit was estimated at Rs 1,124 crore on revenue of Rs 8,189 crore and EBITDA was expected at RS 1,830 crore with margin at 22.3 percent, as per the avearge of estimates of analysts polled by CNBC-TV18.

Sun Pharma said its debt equity ratio (long-term borrowings + short-term borrowings + current maturities of long-term borrowings) / (Total equity) was reduced to 0.13 percent as of September 2020, compared to 0.18 percent at the end of March 2020, while net worth droped to Rs 44,699.84 crore at the end of September, from Rs 44,891.90 crore in March this year.

The stock was trading at Rs Rs 482.10, up 2.75 percent on the BSE at 15:07 hours IST.

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