Sun Pharma Q4 Results: Profit Tumbles On Litigation Costs, Revenue Rises
Sun Pharma’s Q4 profit fell 42% year-on-year to Rs 400 crore on the back of revenue that rose 14% to Rs 8,185 crore.
Drugmaker Sun Pharmaceutical Industries Ltd.’s quarterly profit fell as a one-time litigation cost offset the sales benefit from new launches.
Net profit fell 42% year-on-year to Rs 400 crore in the quarter ended March, according to an exchange filing. That compares with the Rs 1,002-crore consensus estimate of analysts tracked by Bloomberg.
- Revenue rose 14% to Rs 8,185 crore—higher than the estimated Rs 8,072 crore.
- Operating profit rose 34% to Rs 1,363 crore.
- Margin expanded 240 basis points to 16.6%.
The drugmaker reported an exceptional cost of Rs 261 crore during the quarter as it agreed to settle an antitrust litigation relating to one of its products.
The bottom line declined despite a lower base. Sun Pharma’s profit had taken a Rs 1,090-crore hit in the year-ago period, owing to changes in its distribution policy of Aditya Medisales.
The company also reported lower other income and a higher tax outgo that further dented profit. Other income more than halved to Rs 100 crore during the quarter. Tax expense stood at Rs 83 crore. Besides, employee costs rose, impacting operating margin.
India’s pharmaceuticals sales rose ahead of the nationwide lockdown as consumers stocked up on medicines amid the Covid-19 outbreak. India’s overall pharmaceutical sales that, according to data released by AIOCD-AWACS, grew 9.7% year-on-year in the January-March period. Sun Pharma, too, benefited from its new launches gSensipar (hyperparathyroid drug), gUloric (used to lower blood uric acid levels in adults with gout) and gRanexa ER (chronic chest pain).
“The group continues to monitor the impact of Covid-19 on its business, including its impact on customers, supply chain, employees and logistics,” Sun Pharma said in the filing.
On Wednesday, Sun Pharma shares fell 1.95% to Rs 450.20 apiece on the National Stock Exchange while the benchmark Nifty 50 gained 3.17% to end the day at 9,314.95 points. The quarterly results were declared during market hours.