Sanofi India shares gain as Oct-Dec net profit rises sharply

Sanofi India‘s shares rose sharply on February 24 as net profit surged in the last quarter of 2022.

At 10.21 am, shares of the pharma company were trading at Rs 5,559.00 on the National Stock Exchange, up 3.59 percent from the previous close. The stock also tested an intraday high of Rs 5,626.50.

Gains in the stock were also accompanied by strong volumes, which were significantly higher than the one-month daily traded average volumes.

Sanofi’s quarterly revenues declined 2.3 percent year-on-year to Rs 672 crore, but net profit rose 45 percent YoY, driven by a strong operating performance.

Operating profit or EBITDA margin rose 635 basis points to 24.84 percent as input costs fell. One basis point is one-hundredth of a percent.

Analysts at ICICIdirect have noted that the growth momentum of Sanofi’s power brands such as Lantus and Clexane, as well as its ex-power brands, is yet to return to pre-COVID levels. The brokerage house has also expressed concern that diabetes and cardiovascular therapies together account for more than 50 percent of Sanofi India’s revenue mix, which they feel is a negative for the company.

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Apart from earnings, Sanofi India has also announced a final dividend of Rs 194 per share and a second special dividend of Rs 183 per share for the financial year that ended in December 2022. Sanofi India follows the calendar year as its financial year.