Sun Pharma reported sales growth of 2.5 per cent in FY21 of ₹33,139 crore. In the build-up phase of FY18-20, the margins were impacted by higher R&D expenses, under-leveraged sales force (new additions in India and US), a high direct to consumer (DTC) campaign cost in US (Ilumya and Cequa) apart from higher price erosion in US. The asset base can now generate optimal returns even as R&D and DTC campaigns remain, but lower than earlier peaks. Sun Pharma is reporting an average EBITDA margin of around 25 per cent in the last one year, which is more than the 20 per cent reported in FY18-20.