Sun Pharma shrugs off weak Q1 results

Sun Pharmaceutical Industries rose 2.2% to Rs 860.35 at 9:33 IST on BSE after consolidated net profit dropped 60.23% to Rs 478.96 crore on 5.2% growth in total income to Rs 6862.96 crore in Q1 June 2015 over Q1 June 2014.

The Q1 result was announced after market hours yesterday, 11 August 2015.

Meanwhile, the S&P BSE Sensex was down 131.05 points or 0.47% at 27,735.04.

On BSE, so far 1.67 lakh shares were traded in the counter as against average daily volume of 2.97 lakh shares in the past two weeks.

The stock hit a high of Rs 864 and a low of Rs 844 so far during the day. The stock had hit a record high of Rs 1,200.70 on 7 April 2015. The stock had hit a 52-week low of Rs 748.15 on 26 September 2014.

Sun Pharmaceutical Industries said that the company's bottom line in Q1 June 2015 was adversely impacted by one-time and exceptional charges related to the integration of Sun and Ranbaxy businesses. The company's results for both Q1 June 2015 and Q1 June 2014 include the financials of Ranbaxy Laboratories. Sun Pharmaceutical Industries' earnings before interest, taxation, depreciation and amortization (EBITDA) stood at Rs 1614 crore in Q1 June 2015, resulting in EBITDA margin of 24.7%. EBITDA for Q1 June 2015 includes certain one-time charges related to restructuring and other write-offs. Excluding these one-time items, adjusted EBITDA margin was at 28% in Q1 June 2015, lower than 30.2% in Q1 June 2014.

The company's net sales/income from operations rose 3% to Rs 6522 crore in Q1 June 2015 over Q1 June 2014. The company's R&D investments jumped 37% to Rs 511 crore in Q1 June 2015 over Q1 June 2014.

Sun Pharma reported a sharp surge in other operating income in Q1 June 2015. The company received the proceeds from brand divestments as mandated by various competition authorities pertaining to the Ranbaxy acquisition.

Dilip Shanghvi, Managing Director of Sun Pharmaceutical Industries said that the company continues to invest significantly in R&D and in building critical talent for enhancing specialty and complex generics pipeline.

Sun Pharma is the world's fifth largest specialty generic pharmaceutical company and India's top pharmaceutical company. In India, the company enjoys leadership across 13 different classes of doctors with 30 brands featuring amongst top 300 pharmaceutical brands in India.

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