Sun Pharma Q2 Profit Plummets 36% YoY to Rs 1,989 Crore Due to Exceptional Charges.

Sun Pharmaceutical Industries reported a significant 36% year-on-year decline in consolidated net profit for the September quarter, amounting to Rs 1,989 crore, compared to Rs 3,118 crore the previous year. The earnings were adversely affected by extraordinary charges related to ongoing US litigation and the proposed acquisition of Organon, which together accounted for Rs 1,269 crore in exceptional charges. Despite these challenges, the company’s revenue from operations increased by 12%, reaching Rs 16,199 crore, propelled mainly by robust growth in its domestic formulations business and emerging market activities.

Excluding the exceptional items, Sun Pharma’s adjusted net profit showed resilience, rising by 1% year-on-year to Rs 3,162 crore. The company’s EBITDA also experienced a modest increase of 5% to Rs 4,744 crore, though the EBITDA margin contracted to 29.3% from 31.3% a year earlier, underlining pressures on operating profitability. Moreover, sequentially, the net profit fell 31% from the previous quarter, with a revenue increase of 6%. Noteworthy was the solid performance of the company’s domestic formulations, which saw a 17% rise in sales, making India a vital contributor to the firm’s total revenue.

In the U.S. market, Sun Pharma’s sales were down by 8.2% to $455 million, primarily due to the declining sales of lenalidomide, a significant cancer treatment drug. However, adjusting for lenalidomide, sales in the U.S. showed a slight improvement. The emerging markets segment performed well, experiencing a sales increase of 7.6% to $350 million, while global innovative medicines grew 6.9% to $356 million. This upward trajectory was complemented by recent approvals and strategic licensing agreements, indicating potential for future growth despite the current operational difficulties.

Source: The Economic Times

(Expert Note: This intelligence brief was structured and verified by the Wealthova editorial desk.)