Sun Pharma Q3 net slumps 75% to Rs 365 cr, hit by US tax rate adjustment

Sun Pharmaceutical Industries today reported a 75.17 per cent decline in its consolidated net profit at Rs 365.39 crore for the December quarter, impacted by a one-time deferred tax adjustment of Rs 513 crore related to changes in US tax rates.
The drug major had posted a net profit of Rs 1,471.82 crore in the October-December period of 2016-17.
Its total revenue from operations stood at Rs 6,653.23 crore during the third quarter of 2017-18. It was Rs 7,925.11 crore during the same period of the previous fiscal.
"Our Q3 performance reflects a gradual improvement in profitability over the first half of this year, despite a challenging US generic pricing environment," Sun Pharma Managing Director Dilip Shanghvi said in a statement.

In the US market, company said its sales declined by 35 per cent during the quarter at USD 328 million and accounted for 32 per cent of total sales.
"This decline was driven by the overall pricing pressure in the US generics market and the YoY reduction in sales of generic Imatinib and Olmesartan authorised generics," it added.

In India, sales of branded formulations stood at Rs 2,085 crore, up 6 per cent from previous fiscal and accounting for 32 per cent of total sales, Sun Pharma said.
"Our sales in emerging markets were at USD 189 million for third quarter; a growth of 10 per cent compared to the same quarter last year," it added.

Shares of the company today ended 2.53 per cent down at Rs 574.45 on the BSE.