Sun Pharma Q4 Profit Dips on US Settlement, Drug Write-Downs
India's largest drugmaker, Sun Pharmaceutical Industries, reported a 12% year-on-year drop in consolidated net profit to ₹1,654 crore for Q4 FY24, impacted by one-time expenses including a $485 million settlement with the U.S. Department of Justice over antitrust allegations. Revenue grew modestly by 9% to ₹11,941 crore, supported by steady sales in its core markets, but earnings were dragged down by exceptional items worth ₹2,100 crore, primarily from drug portfolio rationalization and inventory adjustments.
Key Highlights:
U.S. Market Slowdown: North American sales dipped 3% due to pricing pressures and the settlement impact.
Emerging Markets Shine: Sales in India (+14%) and Rest of World (+18%) offset weaknesses.
Specialty Drug Push: The company highlighted growth in its novel drug Ilumya (for psoriasis) and cancer therapies.
R&D Boost: Increased spending to 5.5% of sales (₹655 crore) for pipeline development.
Outlook: Sun Pharma expects mid-single-digit revenue growth in FY25, with margins likely to improve as legal costs normalize. Shares fell 2% post-earnings as investors weighed near-term headwinds against long-term specialty drug potential.