Sun Pharmaceutical Industries Ltd., India's leading pharmaceutical company, reported a consolidated net profit of ?2,154 crore for the fourth quarter of FY25, marking a 19% year-on-year decline from Rs 2,659 crore in the same period last year.
Financial Performance Overview
Despite the dip in net profit, Sun Pharma's total revenue from operations increased by 8% year-on-year to Rs 12,958.8 crore, up from Rs 11,983 crore in Q4 FY24.
The company's EBITDA for the quarter grew by 22.4% to ?3,716 crore, compared to Rs 3,035 crore in the same quarter last year. The EBITDA margin expanded to 28.7% from 25.3%, indicating improved operational efficiency.
Segment-Wise Performance
India Formulations: Sales rose by 13.6% year-on-year to Rs 4,213 crore, driven by robust domestic demand.
US Formulations: Sales declined by 2.5% year-on-year to $464 million, impacted by competitive pressures in the US generics market.
Global Specialty Sales: Increased by 8.6% to $295 million, accounting for 19.9% of total Q4 FY25 sales.
Emerging Markets and Rest of World: Formulation sales rose by 6.3% and 2.0% year-on-year, respectively.
Dividend Announcement
Sun Pharma's Board of Directors has declared a final dividend of Rs 5.50 per share for FY25. The record date for determining the entitlement of members for the final dividend is set for July 7, 2025. This final dividend, combined with the interim dividend of Rs 10.50 per share declared earlier, brings the total dividend for FY25 to Rs 16 per share, compared to Rs 13.50 per share in FY24.
Market Reaction
Following the announcement of the Q4 results, Sun Pharma's share price declined by nearly 5%, reaching an intraday low of Rs 1,636.30 on the BSE. The decline reflects investor concerns over the drop in net profit and challenges in the US market.
Conclusion
Sun Pharma's Q4 FY25 performance highlights the company's resilience in the face of market challenges, with strong domestic growth and operational efficiency offsetting pressures in the US market. The declared dividend underscores the company's commitment to delivering shareholder value amidst its ongoing business strategies.
Written by Indira Securities SEBI Registered with 30 plus years of experience in Stock Market!!!