Sun Pharma Q1 net zooms over 3-fold at Rs 2,034 cr on strong US sales

Overall consolidated revenue grew 23% to Rs 8,007 cr

Sun Pharmaceutical Industries posted 3.6 per cent times growth in consolidated net profit in Q1FY17 on a year-on-year basis on the back of 25 per cent growth in its US business.

Net profit for the quarter was Rs 2,034 crore as against Rs 555 crore in the same period last year. The company's result in first quarter of last year was impacted due to one off costs and exceptional items of Rs 685 crore related to Ranbaxy integration.

 

Overall consolidated revenue grew 23 per cent to Rs 8,007 crore and the company reported an earning before interest tax depreciation of Rs 2,685 crore, a growth of 66 per cent over same period last year.

US business accounts for half of Sun Pharma's revenue and the company has reported two successive strong quarters of growth due to 180 day exclusivity in sale of anti leukemia drug Gleevec.

Sun Pharma's US subsidiary Taro also saw 9 per cent growth in sales though the same was lower on a sequential basis. Sales in the US market were also boosted by a non recurring gain of $ 35 million, company management informed analysts in a post results conference call.

In a statement Dilip Shanghvi, managing director of the company said, "We continue to accrue synergies from the Ranbaxy acquisition while simultaneously investing in building the specialty business in the US." The company plans to spend about 9 per cent of its revenue on research and development in FY17.

The company US business has been impacted for past several quarters because of regulatory concerns over its Halol plant. Shanghvi said the company had completed the remediation measures and requested the US Food and Drugs Administration to conduct an inspection.

Sun Pharma management indicated the company is likely to see a full year impact of around Rs 150 crore on its domestic business due to price caps imposed by the government. In Q1FY17 domestic business grew 8 per cent to Rs 1,854 crore.