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Sun Pharma Q1 profit at Rs 1,387 cr

Press Trust of India  |  New Delhi 

Sun Pharmaceutical Industries on Tuesday reported a consolidated net profit of Rs 1,387.48 crore for the quarter ended June 30, 2019.

The company had posted a profit of Rs 1,057.29 crore for the corresponding period of the previous fiscal, Sun Pharma said in a filing to BSE.

Total revenue from operations for the quarter under review stood at Rs 8,374.36 crore. It was Rs 7,224.17 crore for the same period a year ago.

"Pola Pharma lnc Japan became a step-down subsidiary of the company with effect from January 1, 2019. Accordingly, the results for the quarter include results of Pola Pharma Inc, and hence are not comparable with quarter ended June 30, 2018," the company said.

Consolidated research and development investment for the first quarter of 2019-20 was Rs 422 crore, or 5.1 per cent of the sales compared to Rs 500 crore or 7 per cent of the sales for the year-ago period, it added.

"We have recorded growth across most of the markets for the quarter and our performance is in line with our full-year guidance," Sun Pharmaceutical Industries MD Dilip Shanghvi said.

The company is consistently focusing on improving efficiencies and cost structure to ensure reasonable returns for its generics business, he added.

"At the same time, we continue our unwavering efforts on building the specialty business and are encouraged by the potential of one of our pre-clinical research molecules which is likely to enter clinical trials next year," Shanghvi said.

The recent out-licensing of Tildrakizumab and Cequa for Greater China market and the regulatory filing of Tildrakizumab in Japan reflect the company's global aspirations for the specialty business. Ilumya/Ilumetri is gradually gaining traction in the US and Western Europe, he added.

Sale of branded formulations in India for the first quarter of 2019-20 was at Rs 2,314 crore, up 8 per cent over the first quarter last year and accounted for 28 per cent of total sales, Sun Pharma said.

"Sun Pharma is ranked number 1 and holds approximately 8.2 per cent market share in the over Rs 1,32,000 crore Indian pharmaceutical market as per AIOCD AWACS June-2019 report," it added.

Sales in the US were at USD 424 million for the quarter, a growth of 12 per cent over same period last year and accounted for 36 per cent of total sales. Sales for the quarter include the contribution from a significant business of generic supply to a customer, Sun Pharma said.

At the same time, Taro posted sales of USD 161 million for the first quarter of 2019-20, up 4 per cent over the same period of the last year. Taro's net profit for the quarter under review was USD 66 million, marginally down from the year-ago period.

The company's sales in emerging markets were almost flat at USD 194 million. While the business has grown on constant currency basis, unfavourable currency movements have impacted the overall growth, it added.

"Sales in emerging markets accounted for 16 per cent of total sales for the quarter," Sun Pharma said.

Formulation sales in Rest of World (ROW) markets excluding the US and emerging markets were at USD 167 million in the first quarter of 2019-20, a growth of 56 per cent over the year-ago period and accounting for approximately 14 per cent of the revenues, it added.

The active pharmaceutical ingredients (API) business of the company "imparts benefits of vertical integration for our formulations business. We continue to increase the API supply for captive consumption for key products", Sun Pharma said.

For the first quarter of 2019-20, external sales of API were at Rs 461 crore, up 17 per cent over the same period of the last year, it added.

Shares of Sun Pharmaceutical Industries settled at Rs 437.55 per scrip on BSE, up 3.71 per cent from the previous close.

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

First Published: Tue, August 13 2019. 17:35 IST