Sun Pharma – Good Growth

Sun Pharma reported Q4FY09 sales Rs12.5 bn (up 131% YoY), PAT Rs7.2bn (up 241%YoY). Results were dominated by the higher-than-expected Protonix shipments. EBITDA margin expanded to 58.9% in Q4FY08 from 28.4% in Q4FY07. The India formulations business grew 25%YoY in FY08 to Rs14.7bn while the ROW formulations business grew 30%YoY in FY08 to Rs2.6bn. The US business grew 164% YoY to Rs13.9bn driven by Trileptal exclusivity and the Protonix launch.

The management guidance is 18%-20% YoY growth for FY09 for the non-US business and expects 25% growth in the US business.Management reiterated that it is confident of getting the Effexor XR approval later this year but did not give any specific timeline.

EPS estimates for FY09 is between Rs 80 to Rs 82.50.