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Sun Pharma advances after posting Q2 profit

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Sun Pharmaceutical Industries rose 3.61% to Rs 443 after consolidated net profit stood at 1,064.09 crore in Q2 September 2019 over a net loss of Rs 269.60 crore in Q2 September 2018.

The consolidated net sales jumped 16.10% to Rs 7,949.19 crore in Q2 September 2019 over Q2 September 2018. The result was announced during market hours today, 7 November 2019.

The company had entered into settlement agreements with Apotex Corporation, retailer purchasers, end-payor plaintiffs and direct purchaser plaintiffs in respect of an antitrust litigation relating to a product Modafinil. The company had accounted for an amount of Rs 950.50 crore and Rs 1238.38 crore in the year ended on 31 March 2018 and 31 March 2019 respectively out of which Rs 950.50 crore and Rs 1214.38 crore were disclosed as exceptional item. During previous quarter, the company had entered into a settlement agreement with the last remaining plaintiff and the settlement amount had been grouped in other expenses.

Adjusted for the exceptional item of Rs 1,214 crores for Q2 last year, net profit growth was 12.6% in Q2 September 2019. EBITDA was at Rs 1,616 crore, up by 12% over Q2 last year.

Sale of branded formulations in India for Q2FY20 was Rs. 2,515 crore, up by 35% over Q2 last year and accounted for 31.6% of total consolidated sales.

Sales in the US were $339 million for the quarter, flat over same period last year and accounted for 30% of total consolidated sales.

Sales in emerging markets were at $201 million for Q2, up 3% over same quarter last year.

Formulation sales in Rest of World (ROW) markets excluding US and Emerging Markets were $161 million in Q2FY20, a growth of 49% over Q2 last year and accounting for approximately 14.3% of total consolidated sales.

Consolidated R&D investment for Q2FY20 was Rs 488 crore, or 6.1% of sales as compared to Rs 452 crore or 6.6% of sales for Q2 last year.

Dilip Shanghvi, managing director of the company said, "Our Q2 and H1 performance demonstrates sustained growth momentum and is in-line with our full-year guidance. We continue to focus on cost savings and efficiency improvement to align our generic business with the changing industry dynamics. Simultaneously, we continue to progress on building our global specialty business. In the US, we recently launched Cequa while Ilumya continues to gain traction. The recently released long-term follow-up clinical data for Ilumya demonstrates sustained response for patients over four-year period with very good safety profile. We are excited about the long term prospects of Ilumya."

Sun Pharma is the world's fourth largest specialty generic pharmaceutical company and India's top pharmaceutical company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 07 2019. 15:18 IST