Archives February 2025

Sun Pharma Q3 FY25 Results
Sun Pharma Q3 FY25 Results: Revenue Up 10.5% YoY to ₹13,675 Cr, Profit Surges to ₹2,913 Cr

Sun Pharmaceuticals Industries Ltd: Overview 

Sun Pharmaceutical Industries Ltd. is the largest pharmaceutical company in India and one of the leading specialty generic drug manufacturers globally. It operates across over 100 markets, with a strong presence in the U.S., India, Emerging Markets, and Western Europe. The company and its subsidiaries has various manufacturing facilities spread across the world with trading and other incidental and related activities extending to global market. The company’s product portfolio includes branded generics, complex generics, active pharmaceutical ingredients (APIs), and specialty drugs, particularly in dermatology, ophthalmology, and oncology. With an extensive R&D focus, Sun Pharma has consistently expanded its specialty drug pipeline, leveraging both organic growth and strategic acquisitions. It produces a comprehensive and diverse portfolio of generic and specialty medicines targeting wide spectrum of chronic and acute treatments. The global pharmaceutical industry is experiencing strong growth driven by rising healthcare expenditures, increased chronic disease prevalence, and higher demand for specialty medications. India remains a key player in the global generic drug industry, supplying over 20% of global generics by volume. Additionally, Sun Pharma is capitalizing on regulatory approvals, biosimilars opportunities, and increased focus on high-margin specialty drugs, positioning itself for sustainable long-term growth. 

Latest Stock News 

India’s formulation sales reached ₹43,004 million, marking a 13.8% increase. US formulation sales were USD 474 million, showing a slight decline of 0.7%. Global Specialty sales amounted to USD 370 million, which includes USD 45 million in milestone revenues. Excluding these milestones, Global Specialty sales grew by 17.5%. These sales, excluding milestones, represented 21% of total Q3FY25 sales. Formulation sales in emerging markets reached USD 277 million, up 10.1%, while sales in the rest of the world rose by 21% to USD 259 million. The company’s R&D investments for the quarter stood at ₹8,450 million, up from ₹8,245 million in Q3FY24. According to the SMSRC (July-Oct 2024) report, the company is ranked No.1 by prescriptions across 12 doctor categories. In Q3FY25, the company launched 12 new products in the Indian market. In the US, formulation sales were USD 474 million for Q3FY25, down 0.7% compared to the same quarter last year, accounting for about 30% of the total consolidated sales. For the first nine months of the fiscal year, sales amounted to USD 1,457 million, reflecting a 5.7% increase. The R&D pipeline includes 7 novel entities undergoing clinical trials. The company offers a comprehensive product portfolio in the US market, with approved ANDAs for 541 products and 109 ANDAs pending US FDA approval, including 28 tentative approvals. Additionally, there are 51 approved NDAs, with 13 NDAs awaiting US FDA approval. During the quarter, 6 ANDA filings were made, and 2 ANDA approvals were received. Upcoming developments include Phase 3 topline data for Ilumya in psoriatic arthritis expected in H2CY25, and the approval of Leqselvi for severe alopecia areata in the US. 

Business Segments

  • India Business: Contributing around 32% of total revenue, Sun Pharma is the largest pharmaceutical company in India with a robust branded generics portfolio, covering therapies such as cardiology, dermatology, ophthalmology, and diabetes. The company continues to launch innovative first-to-market formulations and expand its domestic reach. 
  • U.S. Business: The largest revenue contributor, accounting for approximately 30% of total sales. Sun Pharma has a strong pipeline of complex generics, specialty drugs, and biosimilars, with key brands including Ilumya (psoriasis), Cequa (dry eye), and Odomzo (skin cancer). The U.S. generics market remains competitive, but Sun Pharma’s differentiated portfolio provides an edge. 
  • Emerging Markets (EM): This segment contributes around 18% of revenue, covering Asia, Latin America, and Russia/CIS regions. Sun Pharma continues to strengthen its branded generics presence, leveraging its local partnerships, strong distribution network, and diversified product pipeline. 
  • Rest of the World (ROW): Comprising markets in Western Europe, Canada, and Australia, this segment contributes nearly 14% of revenue. The company focuses on branded generics and specialty drug launches in key developed markets. 
  • Active Pharmaceutical Ingredients (APIs): A crucial segment, supplying APIs both internally for formulations and externally to third parties. Sun Pharma’s API business provides a competitive cost advantage, backed by state-of-the-art manufacturing and backward integration. 

Subsidiary Information

  • Taro Pharmaceuticals: Taro Pharmaceuticals is a key subsidiary of Sun Pharma, operating across the United States, Canada, and Israel, with a strong focus on dermatology and niche generic drugs. The company has established itself as a leader in the development and manufacturing of topical formulations, which include creams, ointments, and gels used in the treatment of various skin conditions. Taro’s specialization in dermatology has allowed it to build a robust portfolio of high-margin specialty products. 
  • Ranbaxy Laboratories: Sun Pharma acquired Ranbaxy Laboratories in 2015, a strategic move that significantly strengthened its global generics portfolio. Ranbaxy had a well-established presence in India and Emerging Markets, bringing with it an extensive product range and a wide distribution network. The integration of Ranbaxy into Sun Pharma’s operations led to substantial improvements in research and development (R&D) capabilities, enabling the company to develop and launch high-quality, affordable generic medicines across multiple geographies. 
  • Poland’s Polpharma: Polpharma, a leading pharmaceutical company based in Eastern Europe, plays a crucial role in strengthening Sun Pharma’s position in the CIS (Commonwealth of Independent States) and European branded generics market. With a strong focus on branded generics, Polpharma provides Sun Pharma with access to an extensive product portfolio and a well-established distribution network across multiple European countries. 
  • Dusa Pharmaceuticals: Dusa Pharmaceuticals is a specialized subsidiary that focuses on photodynamic therapy (PDT) for dermatological treatments, reinforcing Sun Pharma’s position in the high-value specialty pharmaceutical segment. Dusa’s innovative light-activated drug treatments are widely used for various skin-related disorders, offering patients advanced therapeutic options.  
  • Sun Pharma Advanced Research Company (SPARC): Sun Pharma Advanced Research Company (SPARC) serves as the dedicated research and development (R&D) arm of Sun Pharma, focusing on new drug discovery, innovative drug delivery systems, and specialty pharmaceuticals. By continuously investing in cutting-edge research, SPARC enhances Sun Pharma’s long-term growth strategy, reinforcing its position as a global leader in the pharmaceutical industry. 

Q3 FY25 Earnings 

  • Revenue of ₹13675 crore in Q3 FY25 up by 10.5% YoY from ₹12381 crore in Q3 FY24.  
  • EBITDA of ₹4009 crore in this quarter at a margin of 29% compared to 28% in Q3 FY24. 
  • Profit of ₹2913 crore in this quarter compared to a ₹2516 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 12381 13675 43886 48497 
Expenses 8904 9666 32235 35479 
EBITDA 3477 4009 11650 13018 
OPM 28% 29% 27% 27% 
Other Income 180 149 459 865 
Net Profit 2561 2913 8513 9610 
NPM 20.6% 21.3% 19.4% 19.8% 
EPS 10.5 12.1 35.3 39.9 
Nestle India Q3 FY25 Results
Nestlé India Q3 FY25 Results: Revenue Rises 3.9% YoY to ₹4,780 Cr, Profit at ₹688 Cr

Nestle India Ltd: Overview 

Nestle India Limited, a subsidiary of the Swiss multinational Nestle S.A., is one of the leading FMCG companies in India, specializing in nutrition, health, and wellness products. With a presence spanning over six decades, Nestle India has become synonymous with quality and innovation in the Indian food and beverage industry. The company operates in various product categories, including dairy, confectionery, beverages, instant foods, and infant nutrition, with some of the most recognized brands like Maggi, Nescafe, KitKat, and Cerelac. Nestle India’s extensive distribution network ensures that its products are widely available across urban and rural markets, supported by continuous investments in research, development, and local manufacturing. The company focuses on sustainable growth, innovation in nutritional science, and digital transformation to enhance consumer experience, making it a dominant player in the Indian FMCG sector. The Indian food and beverage industry is poised for robust growth, driven by rising disposable incomes, urbanization, and increasing health consciousness among consumers. The industry is expected to expand due to growing demand for packaged and ready-to-eat foods, fortified nutrition products, and plant-based alternatives. The e-commerce and digital retail boom further strengthens Nestle India’s market position, allowing it to reach a broader consumer base. Moreover, the Indian government’s emphasis on food safety regulations, nutrition awareness programs, and sustainable manufacturing practices aligns with Nestle’s long-term business strategy. The sector faces challenges such as raw material price volatility, changing consumer preferences, and regulatory complexities, but Nestle India continues to innovate with new product launches and sustainable packaging solutions. 

Latest Stock News 

In the third quarter, three out of four product groups demonstrated strong growth, driven by a combination of pricing and volume expansion. Key brands continued to perform well, which is encouraging despite the challenging market environment. Nestle’s powdered and liquid beverages segment was the largest growth driver, achieving high double-digit growth. Notably, the beverages retail segment surpassed ₹2000 crore, in revenue over the last twelve months, marking a significant milestone. The Out-of-Home business also reported strong double-digit growth, particularly in the food and beverage solutions portfolio. E-commerce maintained its rapid growth trajectory, posting high double-digit growth and contributing 9.1% to domestic sales. Additionally, new product launches since 2015 now account for approximately 7% of the company’s total sales. 

This quarter was characterized by food inflation, a slowdown in urban consumption, and a gradual recovery in rural markets. Revenue is projected to grow by 4%, supported by a 2% increase in volume and price hikes. However, EBITDA margins are expected to decline by 189 basis points year-over-year to 22%, largely due to weaker gross margin performance. Key factors to monitor include the demand outlook in rural versus urban markets, competitive intensity, and raw material price trends. Nestle has also expanded its manufacturing capacity with a new production line for KitKat in Gujarat, which will have an annual capacity of 15,000 tons. The estimated capital expenditure for this unit is around ₹1,100 crore, which will be fully funded through internal accruals without the need for external borrowing. 

Business Segments

  • Prepared Dishes & Cooking Aids: This segment includes the flagship Maggi brand, which dominates the instant noodles and ready-to-cook meals category in India. Nestle India continues to innovate within this segment by introducing healthier variants, fortified products, and expanding its range of pasta, soups, and seasonings. 
  • Milk Products & Nutrition: This segment covers dairy-based products such as Nestle Milk, Every day, Nestle Slim Milk, and Cerelac, catering to consumers of all age groups. The company focuses on enhancing nutritional value, affordability, and sustainability in its dairy offerings, with an increasing shift towards fortified and protein-rich products. 
  • Beverages: Nestle India holds a strong market share in the beverages segment with brands like Nescafe, Nestea, and Milo. The rising demand for premium and instant coffee products, along with increasing consumer preference for healthy and functional beverages, has led to further innovations in this segment. 
  • Chocolate & Confectionery: Nestle’s stronghold in the confectionery segment includes globally popular brands like KitKat and Munch. The segment benefits from premiumization trends and increasing chocolate consumption in India, with the introduction of innovative flavours, formats, and healthier alternatives. 
  • Infant Nutrition: With brands like Lactogen and Nan Pro, Nestle India is a leading player in the infant nutrition market. The company focuses on providing scientifically advanced, safe, and highly nutritious products to support early-stage child development. 

Subsidiary Information

  • Nestle R&D Centre India Pvt Ltd: This subsidiary plays a crucial role in Nestle’s innovation pipeline, focusing on product development, quality enhancement, and customization for the Indian market. The R&D center collaborates with local agricultural and nutrition experts to ensure that Nestle India stays ahead in terms of product relevance and nutritional advancements. 
  • Nestle India Beverages Pvt Ltd: This subsidiary manages Nestle India’s beverage portfolio, primarily overseeing the Nescafe brand and its expansions into instant coffee, cold brews, and functional drinks. Given the rising demand for ready-to-drink and plant-based beverages, this division focuses on continuous innovation and premiumization. 
  • Nestle Nutrition India Pvt Ltd: Dedicated to infant and maternal nutrition, this subsidiary oversees the production, marketing, and distribution of brands like Cerelac, Lactogen, and Nan Pro. It is committed to scientific research in early nutrition, aiming to provide high-quality, fortified, and safe nutrition products for Indian consumers. 
  • Nestle Waters India Pvt Ltd: This subsidiary handles Nestle’s bottled water business, catering to the growing demand for premium and packaged drinking water solutions. While still a niche segment, Nestle Waters India is expanding into sustainable and functional hydration solutions, including flavoured and vitamin-enhanced waters. 
  • Nestle India Services Pvt Ltd: This subsidiary focuses on supply chain, logistics, and customer service operations, ensuring smooth production and efficient market distribution. It plays a vital role in digitizing Nestle India’s supply chain, reducing costs, and enhancing product availability across urban and rural markets. 

Q3 FY25 Earnings 

  • Revenue of ₹4780 crore in Q3 FY25 up by 3.9% YoY from ₹4600 crore in Q3 FY24.  
  • EBITDA of ₹1077 crore in this quarter at a margin of 23% compared to 24% in Q3 FY24. 
  • Profit of ₹688 crore in this quarter compared to a ₹656 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 CY23 FY24 
Revenue 4600 4780 19126 24394 
Expenses 3505 3703 14655 18581 
EBITDA 1095 1077 4471 5813 
OPM 24% 23% 23% 24% 
Other Income -77 4 116 159 
Net Profit 656 688 2999 3933 
NPM 14.3% 14.4% 15.7% 16.1% 
EPS 6.8 7.1 31.1 40.8 
Adani Total Gas Q3 FY25 Results
Adani Total Gas Q3 FY25 Results: Profit Falls 19% to ₹142 Cr, Revenue Rises 13%

Adani Total Gas Ltd: Overview 

Adani Total Gas Ltd. (ATGL) is a joint venture between the Adani Group and TotalEnergies, a global integrated energy player. Founded in 2004, the company is a key player in the Indian natural gas distribution sector, focusing on the development and operation of city gas distribution (CGD) networks for both industrial and residential sectors. Adani Total Gas is involved in the distribution of piped natural gas (PNG) and compressed natural gas (CNG) to both domestic and commercial customers, particularly in cities across India. With the backing of the Adani Group, one of the largest business conglomerates in India, and TotalEnergies, a global energy giant, ATGL has leveraged its expertise to become a major provider of natural gas solutions in the country. 

The industry outlook for Adani Total Gas is highly promising, with the Indian government’s push toward cleaner energy sources, urbanization, and infrastructure development fuelling the demand for natural gas. Natural gas is seen as a transition fuel to meet India’s environmental goals, particularly in terms of reducing emissions from coal and oil, making it an attractive energy alternative. The Indian government’s focus on expanding CGD networks across multiple cities, combined with the growing adoption of CNG for transportation and PNG for cooking and industrial use, is expected to drive growth for ATGL in the coming years. Moreover, India’s increasing focus on sustainable and cleaner energy sources presents an opportunity for the company to expand its footprint and contribute to India’s energy transition. The development of new gas-based infrastructure, rising demand for natural gas, and the company’s strong positioning in both the industrial and residential markets provide a solid foundation for long-term growth. Furthermore, global energy trends towards decarbonization and the rising adoption of CNG vehicles also offer significant growth opportunities for ATGL, both in domestic and international markets. 

Latest Stock News 

CNG station network has expanded to 605 stations, with 58 new stations added during the year, including 28 new stations in the quarter under review. Additionally, our steel pipeline infrastructure has grown to 13,082-inch kilometres. On the domestic piped natural gas (PNG) front, ATGL now serves over 922,000 households. In the nine-month period, we added over 100,000 new connections, and during the December quarter, 28,677 connections were added. For industrial and commercial consumers, we have expanded our base to 8,913, adding 582 connections during the nine months, and 167 connections in the third quarter. Regarding emerging businesses, our e-mobility efforts have seen significant progress, with 1,914 EV charging points commissioned across 22 states and 4 Union Territories, covering 226 cities. We aim to reach approximately 3,000 charging points by March-April this year. Our EV charging infrastructure has also expanded to nearly 20 airports across India, making us one of the largest airport EV charge point operators in the country. On the gas front, ATGL faced two reductions in APM gas allocation. The first reduction, from 63% to 51%, occurred on October 16, 2024, followed by a second reduction from 51% to 37% on November 16, 2024. These reductions, combined with the increase in gas prices, resulted in an EBITDA of INR 272 crores for the quarter, with a PBT of INR 193 crores and a PAT of INR 143 crores. However, effective from January 16, 2025, the APM allocation for CNG has been increased from 37% to 51%, which is expected to have a positive impact in the current quarter. CNG continues to constitute 25% of our entire portfolio. 

Business Segments 

  • City Gas Distribution (CGD): The CGD segment forms the core of Adani Total Gas’s business. It involves the establishment and operation of pipelines that deliver natural gas to homes, businesses, and industries within designated urban areas. ATGL has expanded its CGD network across numerous cities in India, including major urban centers like Ahmedabad, Faridabad, and Khurja. With a commitment to sustainability and energy efficiency, the CGD segment is poised to remain a key revenue driver for ATGL. 
  • Compressed Natural Gas (CNG): The CNG segment is another important area for Adani Total Gas, focusing on providing CNG for vehicles as an alternative to conventional fuels like petrol and diesel. The Indian government has been encouraging the use of CNG vehicles as part of its efforts to reduce air pollution and dependence on oil imports. ATGL operates CNG stations in key cities, providing customers with a cleaner and more cost-effective fuel option.  
  • Piped Natural Gas (PNG): Adani Total Gas is also involved in the distribution of PNG to residential, commercial, and industrial customers. Piped natural gas offers significant convenience and cost advantages over traditional energy sources such as LPG and firewood. This segment is witnessing rapid growth as more urban households and businesses opt for natural gas for cooking, heating, and other industrial applications.  
  • Renewable Energy and Sustainable Solutions: With the global shift towards renewable energy, Adani Total Gas has also been exploring opportunities in the renewable energy space. The company has begun investing in renewable energy projects such as solar energy and green hydrogen, with an aim to complement its natural gas operations and contribute to India’s sustainability goals. 
  • Infrastructure Development and Management: The infrastructure development segment covers the planning, construction, and management of city gas distribution networks, as well as the development of fuelling stations for CNG vehicles. ATGL is actively involved in expanding the pipeline infrastructure, which is crucial for the transportation and distribution of natural gas. 

Subsidiary Information 

  • Adani Gas Limited: Adani Gas Limited is a subsidiary of Adani Total Gas that focuses on the development of city gas distribution networks. It operates in multiple cities and is responsible for the supply of piped natural gas (PNG) to households and compressed natural gas (CNG) to vehicles. The subsidiary plays a critical role in expanding the natural gas distribution network across India, contributing significantly to ATGL’s growth in both urban and semi-urban markets. 
  • Adani Green Energy Limited: Adani Green Energy Limited, a subsidiary within the Adani Group, is involved in the development of renewable energy projects, particularly in solar power. It focuses on generating clean energy through solar installations and contributes to Adani Total Gas’s strategic diversification into renewable energy.  
  • Adani Gas Infrastructure Limited (AGIL): AGIL is responsible for building and managing the infrastructure required for natural gas transportation and distribution. This subsidiary is pivotal in the expansion of ATGL’s pipeline networks and the establishment of CNG refuelling stations. 
  • Adani Transmission Limited: While primarily focused on the transmission of electricity, Adani Transmission is indirectly involved in the energy distribution network that complements Adani Total Gas’s operations. The synergy between both companies supports the broader Adani Group’s energy infrastructure goals, positioning ATGL to leverage integrated energy solutions as it expands its natural gas operations. 
  • Adani Renewable Energy Park Limited: A subsidiary dedicated to renewable energy initiatives, Adani Renewable Energy Park plays a key role in the development of large-scale renewable energy projects. The integration of renewable energy projects into ATGL’s portfolio strengthens the company’s position as a leader in both natural gas and clean energy solutions. 

Q3 FY25 Earnings 

  • Revenue of ₹1294 crore in Q3 FY25 up by 11.9% YoY from ₹1156 crore in Q3 FY24.  
  • EBITDA of ₹265 crore in this quarter at a margin of 20% compared to 25% in Q3 FY24. 
  • Profit of ₹142 crore in this quarter compared to a ₹177 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 1156 1294 4378 4475 
Expenses 868 1030 3508 3371 
EBITDA 288 265 870 1104 
OPM 25% 20% 20% 25% 
Other Income 18 8 54 62 
Net Profit 177 142 546 668 
NPM 15.3% 10.9% 12.5% 14.9% 
EPS 1.6 1.3 4.9 6.1