Sun Pharma Q3 profit falls 26% to Rs 913.5 crore\, India sales up 13%

Sun Pharma Q3 profit falls 26% to Rs 913.5 crore, India sales up 13%

Sun Pharma Q3 results: The drug maker's revenue from operations grew by 5.36 per cent to Rs 8,154.85 crore as compared to Rs 7,740.19 crore in the corresponding quarter

ndia sales, which accounted for 31 per cent of total revenue, rose 13 per cent YoY to Rs 2,517 crore in Q3FY20

Pharma major Sun Pharmaceutical Industries on Thursday reported 26.44 per cent year-on-year (YoY) decline in consolidated net profit at Rs 913.52 crore for the third quarter ended December 31, 2019. The Mumbai-headquartered firm had reported a net profit of Rs 1,241.85 crore in the December quarter of FY19 (Q3FY19).

The drug maker's revenue from operations grew by 5.36 per cent to Rs 8,154.85 crore as compared to Rs 7,740.19 crore in the corresponding quarter.

India sales, which accounted for 31 per cent of total revenue, rose 13 per cent YoY to Rs 2,517 crore in October-December period of this fiscal. During the quarter under review, the company launched 27 new products in the Indian market.

Sales in the US were $ 350 million for the quarter, a decline of 3 per cent over same period last year and accounted for 31 per cent of total consolidated sales. We recently commercialised Cequa in the US and the launch has been received well, the drug maker said in a regulatory filing.

In emerging markets, sales were at $ 195 million for Q3, a decline of 4 per cent over same quarter last year. The decline was primarily led by lower tender business revenues in South Africa. Overall sales in emerging markets accounted for 17 per cent of total consolidated sales for the quarter.

In rest of world markets, excluding US and emerging markets, formulation sales were $ 155 million in Q3FY20, a growth of 24 per cent over Q3 last year and accounting for approximately 14 per cent of total consolidated sales. The main growth driver was the consolidation of Pola Pharma (Japan) business.

EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) declined 14.5 percent YoY to Rs 1,841.4 crore and margin contracted 520 basis points (bps) to 22.6 percent in Q3FY20.

Consolidated research and development (R&D) investment for Q3FY20 was Rs 527 crore, or 6.6 per cent of sales compared to Rs 465crores or 6 per cent of sales for Q3 FY19.

Commenting on Q3 earnings, Dilip Shanghvi, Managing Director of Sun Pharmaceutical Industries said, "Our branded business in India is doing well and has recorded double-digit growth, for Q3 as well as for the nine month period. For the international business, we continued our efforts to enhance our portfolio in new markets by entering into a licensing agreement with AstraZeneca in China for some of our novel oncology products. Simultaneously, we continue to enhance our global specialty business which is gradually becoming a meaningful growth engine."

The drug maker's board has also declared an interim dividend of Rs 3 per equity share of Rs 1 each for the financial year 2019-20. The board has fixed February 18 as the Record Date to determine the names of the equity shareholders, who will be entitled to receive interim dividend for the financial year 2019-20. The payment of the interim dividend would be made to the eligible shareholders on or before February 24, 2020.

Reacting to Q3 earnings, shares of Sun Pharmaceutical Industries closed 11.3 per cent higher at Rs 430.95 apiece on the Bombay Stock Exchange.

By Chitranjan Kumar