By:- Thomas V Abraham, Research Analyst, Mirae Asset Sharekhan.
Sun Pharma delivered 11.8% revenue growth despite an 8% drop in US sales as generic Revlimid erosion continued. India grew a strong 17%, and the weaker rupee also helped. EBITDA margin fell about 200 bps to 29.3% on higher operating costs. The sharp fall in reported profit was due to one-offs: a Rs.923 crore US antitrust settlement and Rs.346 crore of Organon acquisition costs. Excluding these, adjusted PAT was Rs.3,162 crore, up 1.4% YoY. The key monitorable is innovative medicines, where growth has slowed to 7% from the mid-teens, and we will look for clarity on this in the management commentary.
