Sun Pharma Q1 Results: Stock falls 3% from highs after US sales miss expectations

Sun Pharma shares declined as much as 3% from the highs of the day on Friday, July 31, after the company's US sales for the June quarter turned out to be below what the street was expecting.

The drugmaker's US sales came in at $427 million while the street had estimated the figure to be around $470 million to $480 million.

Sun Pharma's net profit came in at ₹2,894 crore below the CNBC-TV18 poll of ₹3,051 crore. It was 27% higher than last year's figure of ₹2,279 crore.

Its revenue of ₹15,299 crore was also below estimates of ₹15,625 crore. It too was 10.5% higher than the ₹13,851 crore it reported in the first quarter last year.

Earnings before interest taxes depreciation and amortisation (EBITDA) increased to ₹4,417 crore, compared to street estimates of ₹4,255 crore. The figure turned out to be 3% higher than last fiscal's ₹4,302 crore.

Its margin expanded to 28.9%, which were higher than expectations of 27.2%. However, it contracted from 31% in the year-ago period.

Sun Pharma's US sales accounted for approximately 26.6% of the company's total consolidated sales.

The emerging markets formulations sales were $311 million and accounted for 19.4% of the total consolidated sales. The rest of world (ROW) formulation sales were at $218 million, accounting for 13.6% of the total consolidated sales.

Global innovative medicines sales were at $351 million in the June quarter and they accounted for 21.9% of sales.

Sun Pharma's active pharmaceutical ingredients (API) portfolio supported its formulation business and AP customers across geographies, the company said. External sales of API were at ₹597.2 crore, it added.

Shares of Sun Pharma cooled off from the day's high, currently trading 0.4% lower at ₹1,992.2. The stock is up 16% so far this year.

This is a breaking news story and is being updated.Also Read: Leela Palaces Hotels & Resorts Q1 Results: Profit jumps over five-fold, margins expand