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Delivering Growth

Sun Pharma showed tremendous resilience in the face of Covid by maintaining business continuity and recording revenue growth

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Rank 17 - Sun Pharmaceuticals

Dilip S. Shanghvi, Managing Director

Sector: Pharmaceuticals

Overall Avg. Score: 2.71

Revenue: Rs 34,334 crore

Most of Sun Pharma’s businesses recorded growth for FY21 despite the challenges posed by the global Covid-19 pandemic. 

The India business of Sun Pharmaceuticals outperformed the average industry growth, said Dilip S. Shanghvi, the company's Managing Director. "We are also enthused by the growth in our global specialty business. We believe that all our businesses are well positioned and our endeavour will be to grow the overall business. We also expect the momentum for our global specialty business to continue," he said. 

Shanghvi termed FY21 as a 'unique year', as it witnessed the full brunt of the Covid-19 pandemic across the global economy and various sectors. Governments globally were forced to resort to stringent lockdowns/ restrictions to prevent the spread of the pandemic, which were gradually relaxed in the second half of FY21.

"Being a supplier of essential products, the pharmaceutical industry continued to manufacture and supply pharmaceutical products. However, the lockdowns across the countries resulted in temporary closure of doctor clinics, restrictions on travel of the medical representatives, and a significant reduction in patient visits to the doctor’s clinic," said Shanghvi. 

Demand Hurt by Covid

Non-critical treatments and elective surgeries were postponed in many cases. Online medical consultation could only partly compensate for face-to-face interactions. This led to lower demand for pharmaceutical products in the first half of the year and a gradual recovery was witnessed only in the second half, as governments lifted the lockdown restrictions. 

"It is against this backdrop that we reported a 2.5 per cent growth in our overall revenues which stood at Rs 331 billion for FY21," Shanghvi said. 

For the full financial year 2020-21, Sun recorded a net profit of Rs 2,903.82 crore compared to Rs 3,764.93 crore in the previous year. Sun’s total revenue from operations stood at Rs 33,498.14 crore for FY21 compared to Rs 32,837.50 crore in FY20.

“FY21 was a year marked by a highly volatile business environment due to the global Covid-19 pandemic and lockdowns in various countries. Despite these challenges... we have been able to maintain business continuity and record positive overall growth,” Shanghvi said. The company's EBITDA for the year grew 25.5 per cent.

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sun pharmaceuticals Magazine 4 June 2022