India's Sun Pharma posts surprise rise in Q2 profit
BENGALURU (Reuters) -Sun Pharmaceutical Industries Ltd, India's largest drugmaker, on Tuesday reported a surprise 10.5% rise in second quarter profit led by a surge in sales of specialty drugs.
Consolidated net profit for three months ended Sept. 30 was 22.62 billion Indian rupees ($273.75 million), up from 20.47 billion rupees last year, said in an exchange filing.
Analysts, on average, expected the company to report profit of 19.83 billion rupees, according to Refinitiv IBES data.
Total revenue from operations jumped 14% 109.52 billion rupees.
Drug sales in India, its biggest market, rose 8.5% to 34.60 billion rupees, whereas sales in the United States, its second-biggest market, were at 32.91 billion rupees, up from 26.77 billion rupees.
Sun Pharma's shares rose as much as 3.2% to hit over seven-year high soon after the earnings announcement.
The company, founded in 1983, has its drugs available in more than 100 countries, and makes over-the-counter medications, anti-retrovirals and active pharmaceutical ingredients for chronic and acute treatments.
Meanwhile, the drugmaker has been diversifying from generic business amid intense price competition, entering the high-margin specialty segment about seven years ago.
Global sales of specialty drugs grew 27.5% to over $200 million, driven by psoriasis medication Ilumya, Cequa eye drops and acne treatment Winlevi, Managing Director Dilip Shanghvi said in a statement.
EBITDA margin for the second quarter rose to 27% from 26.8% in the previous quarter. The margin, however, came in slightly lower from a year ago as input costs grew 27.3% to 20.17 billion rupees.
($1 = 82.6300 Indian rupees)
(Reporting by Rama Venkat in Bengaluru; Editing by Dhanya Ann Thoppil)
