SUN PHARMA Announces Quarterly Results (1QFY20); Net Profit Up 35.3%

Wed, 14 Aug

SUN PHARMA has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

SUN PHARMA Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	72,242	71,639	83,744	16.9%	15.9%
Other income	Rs m	1,998	2,815	2,130	-24.3%	6.6%
Turnover	Rs m	74,239	74,455	85,874	15.3%	15.7%
Expenses	Rs m	56,175	61,471	63,788	3.8%	13.6%
Gross profit	Rs m	16,067	10,168	19,956	96.3%	24.2%
Depreciation	Rs m	4,016	4,541	4,571	0.7%	13.8%
Interest	Rs m	1,309	1,500	1,041	-30.6%	-20.5%
Profit before tax	Rs m	12,739	6,942	16,474	137.3%	29.3%
Tax	Rs m	1,639	-288	1,461		-10.9%
Profit after tax	Rs m	11,101	7,231	15,014	107.6%	35.3%
Gross profit margin	%	22.2	14.2	23.8
Effective tax rate	%	12.9	-4.1	8.9
Net profit margin	%	15.0	9.7	17.5

Year-on-Year Performance:

• The company's operating income during the quarter grew 15.9% on a year-on-year (YoY) basis. The expenses were up by 13.6% YoY during the same period.
• The company's operating profit increased by 24.2% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 23.8% in 1QFY20 as against 22.2% in 1QFY19.
• Depreciation charges increased by 13.8% and finance costs declined by 20.5% YoY, respectively.
• Other income increased by 6.6% YoY during the quarter.
• Net profit for the quarter increased by 35.3% YoY. Net profit margins during the quarter increased from 15.0% in 1QFY19 to 17.5% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 16.9% on a quarter-on-quarter (QoQ) basis. The expenses were up by 3.8% QoQ during the same period.
• The company's operating profit increased by 96.3% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 23.8% in 1QFY20 as against 14.2% in 4QFY19.
• Net profit for the quarter increased by 107.6% QoQ, while net profit margins increased from 9.7% in 4QFY19 to 17.5% in 1QFY20.

To see how SUN PHARMA has performed over the last eight quarters,please visit here.

SUN PHARMA Share Price Performance

Over the last one year,SUN PHARMA share price has moved down from Rs 601.7 to Rs 416.7, registering a Loss of Rs 185.0 or around 30.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,484.3 (down 0.7%). Over the last one year it has moved down from 14,687.0 to 12,484.3, a gain of 2,203 points (down 15.0%).

Overall, the S&P BSE SENSEX is down 0.6% over the year.

Current Valuations

At the current price of Rs 416.7, the price to earnings (P/E) ratio of SUN PHARMA stands at 28.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.4 times.