Sun Pharmaceutical: Leading With Care

Factors like a trustworthy leadership and impressive financial returns have ensured for Sum Pharmaceuticals a regular place in the top 20 list of Most Respected Companies.

Sun Pharma has built a scalable global specialty business over the past few years to drive sustainable growth. "Our R&D investments, highly skilled people, emphasis on technology and the ability to spot the right opportunities have enabled us to build a strong portfolio of specialty products," said Dilip S. Shanghvi, Managing Director, Sun Pharma.

Fiscal year 2021-22 saw the pharma major register a robust top-line and EBITDA growth with global revenues crossing the $5-billion mark and adjusted net profit surpassing the $1 billion mark for the first time in its history. All geographies did well for the company recording double-digit growth, while profitability improved despite rising costs, said Shanghvi in his address to the shareholders. "Normalcy is returning to economic activities globally. Patient visits to doctor clinics are improving and new product launches are gaining traction," Shanghvi added, referring to the latter half of FY22.

The company's global consolidated revenues grew 15.6 per cent to Rs 38,400 crore while EBITDA grew 23.6 per cent to Rs 10,100 crore with EBITDA margins expanding 170bps to 26.5 per cent over the previous year. Adjusted net profit (excluding exceptional items) rose about 29 per cent to Rs 7,600 crore. "The contribution of our global specialty business nearly doubled from 7 per cent of consolidated revenues in FY18 to about 13 per cent in FY22," said Shanghvi.

Operational performance
For FY2022, India formulation s ales stood at Rs 12,700 crore, up 23 per cent and accounting for about 33 per cent of overall revenues. Excluding the contribution of Covid products, the underlying business performed well, with about 20 per cent growth over the previous year. Revenues for the company in the US grew about 13 per cent to Rs 11,400 crore and accounted for approximately 30 per cent of the company's consolidated revenues for FY2022. Specialty sales in US continued to gain traction for the company in FY2022.