Q1 Results: Sun Pharma’s Profit Meets Estimates
Sun Pharmaceutical Industries Ltd. reported quarterly profit in line with estimates.
India’s largest drugmaker reported a profit of Rs 983 crore in the quarter ended June, compared with a loss of Rs 425 crore in the year-ago period, according to its exchange filing. That compares with Rs 911-crore profit analysts tracked by Bloomberg had projected. The company had reported an exceptional loss of Rs 950 crore in the base quarter on account of litigation provisions.
“We are gradually crossing key milestones in our specialty initiatives with the recent commercialisation of Yonsa (cancer drug) in the U.S. and targeted launch of Ilumya (skin condition drug) and Cequa (eye drug) in the coming quarters,” said managing director Dilip Shanghvi in a release accompanying the earnings’ filing.
The company is awaiting approvals from the U.S. drug regulator for two specialty products from its key Halol facility that was cleared earlier this year. “With all these specialty launches lined-up, a substantial portion of our current specialty pipeline will be on market,” Shanghvi said.
Revenue grew 16 percent year-on-year to Rs 7,224 crore, higher than the Rs 6,949 crore estimated by analysts. Other income rose 31 percent year-on-year to Rs 199 crore. Finance costs grew at a modest 20 percent to Rs 131 crore.
On the operational front, earnings before interest, tax, depreciation and amortisation rose 47 percent to Rs 1,607 crore, aided by cost control measures adopted by the company. Margin expanded 460 basis points to 22.2 percent.
- India sales up 22 percent year-on-year to Rs 2,152 crore.
- U.S. finished dosage sales up 8 percent to $380 million.
- Emerging markets sales up 16 percent to $195 million.
- Rest of world sales fell 7 percent to $107 million.
Shares of the company closed 8.2 percent higher, the most since June 8, after the earnings were announced.