Sun Pharma slips after Q2 results

Sun Pharmaceutical Industries fell 0.96% to Rs 601.95 at 13:03 IST on BSE after consolidated net profit surged 325.63% to Rs 1362 crore on 58% increase in net sales to Rs 4192 crore in Q2 September 2013 over Q2 September 2012.

The result was announced after market hours on Wednesday, 13 November 2013.

Meanwhile, the BSE Sensex was up 252.07 points, or 1.25%, to 20,446.47.

On BSE, 1.89 lakh shares were traded in the counter compared with average volume of 1.47 lakh shares in the past one quarter.

The stock hit a high of Rs 622 and a low of Rs 601.05 so far during the day. The stock hit a record high of Rs 650 on 10 October 2013. The stock hit a 52-week low of Rs 328 on 15 November 2012.

The stock had underperformed the market over the past one month till 13 November 2013, falling 2.85% compared with the Sensex's 1.63% fall. The scrip had, however, outperformed the market in past one quarter, rising 11.03% as against Sensex's 5.02% rise.

The large-cap pharmaceutical company has an equity capital of Rs 207.12 crore. Face value per share is Re 1.

Sun Pharmaceutical Industries (Sun Pharma) said net profit for Q2 September 2012 included a provision of Rs 584 crore towards the generic Protonix litigation in the US. Adjusted for that provision, net profit for Q2 September 2013 is up by 51% over Q2 September 2012.

Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) rose 57% to Rs 1828 crore in Q2 September 2013 over Q2 September 2012. EBITDA margin was at 44% in Q2 September 2013, same as in Q2 September 2012.

Branded generic sales in India rose 17% at Rs 949 crore in Q2 September 2013 over Q2 September 2012.

US finished dosage sale grew by 74% at $419 million in Q2 September 2013 over Q2 September 2012.

International formulation sales grew by 17% at $79 million in Q2 September 2013 over Q2 September 2012.

Overall international revenues accounted for more than 75% of total revenues in Q2 September 2013.

Dilip Shanghvi, Managing Director of the company said, "The performance of all our businesses exceeded our plans. We continue to develop a differentiated and specialty driven product basket. We also continue to review opportunities to expand and strengthen our global footprint."

Sun Pharma revised upwards its consolidated fiscal year ending March 2014 (FY14) revenue growth guidance to 25% compared to previous guidance of 18-20%.

The company said the revised guidance takes into account the performance achieved in the half year ended September 2013 (H1FY14) as well the risks associated with increase in competition for some products. Guidance is at constant exchange rate, the company added.

In a separate announcement, Sun Pharma said its board approved the scheme of arrangement to spin off the specified therapeutic and investment business undertakings of Sun Pharma Global FZE into the company without any consideration with effect from 1 May 2013. Sun Pharma Global FZE is a wholly-owned subsidiary of Sun Pharma Global Inc., which is a wholly-owned subsidiary of Sun Pharmaceutical Industries.

Sun Pharmaceutical Industries is an international specialty pharmaceutical company with over 72% sales from global markets. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in US, India and several other markets across the world.

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