 "Dilip Shanghvi")
Sun Pharmaceutical Industries expects 8-10 per cent growth in consolidated revenue in FY 17, company's managing director Dilip Shanghvi said today.
Sun Pharma which is country's largest drug maker posted net profit of Rs 1714 crore in Q4 FY 16, a growth of 92 per cent on a year-on-year basis on the back of strong sales growth in the US market.
Sun Pharma has also proposed a buyback of shares and its board will meet on June 23 to evaluate the proposal.
The company expects its newly acquired branded drug business in Japan to contribute to revenue from second half of FY 17 and the guidance also takes into account continued impact of remediation measures at Halol plant and gains from sale of anti leukemia drug Gleevec for which it has 180 day exclusivity.
Shanghvi said the company will focus on building specialty business in the US and this may see a short term impact on its profitability. It will also increase spend on research and development to around 9 per cent of sales.
“This has been a year of consolidation for us. While we have accrued targeted synergies from the Ranbaxy acquisition, we have also made commensurate investments in building the specialty business in the US. These strategic investments will help us drive the sustainable growth of our business," Shanghvi said in a results statement
In the fourth quarter of FY 16, net sales grew 21 per cent to Rs 7414 crore on a year-on-year basis. While domestic sales rose 17 per cent, dosage business in US grew 19 per cent in same period.
