Sun Pharma posts surprise loss on one-time charges
2 min read . Updated: 31 Jul 2020, 04:22 PM IST- It took a one-time exceptional loss of ₹3,633 crore in the June quarter while fell 9.6% to ₹7,467 crore
Sun Pharmaceutical Industries Ltd., India’s largest drugmaker, reported a surprise quarterly loss in the June quarter, hit by one-time charges. The Mumbai-based company posted a net loss of ₹1,655 crore for the quarter ended June 30, compared to the ₹1,390 crore profit forecast in a Bloomberg survey of analysts. Sun Pharma had reported a net profit of ₹1,387.48 crore in the same period of the previous year.
It took a one-time exceptional loss of ₹3,633 crore. Revenue fell 9.6% to ₹Rs. 7,467 crore compared to the year-ago period, according to a company filing Friday.
Excluding the exceptional items of Rs. 3,633 crore (and its minority interest of Rs. 832 crores), adjusted net profit for Q1 was at ₹1,146 crore.
At the operating level, EBITDA or earnings before interest, taxes, depreciation, and amortizationat was at ₹1,725 crore, with resulting EBITDA margin of 23.1%.
Taro, a subsidiary of Sun Pharma, posted Q1 sales of $117.6 million, down 27% over Q1 last year. Excluding the one-time settlement charge of $478.9 million, net profit was $29 million. Taro’s reported net loss for Q1 was US$ 434.9 million.
Commenting on the Q1 earnings, managing director Dilip Shanghvi, said: “The Q1 performance reflects the impact of the global COVID-19 pandemic and consequent lockdown across markets and is not an indicator of the underlying strength of our business. Despite challenging conditions, we have done well and have not lost market share for any of our key specialty products in the US."
"We have also maintained our market share in the Indian domestic market. Our timely risk mitigation initiatives ensured smooth operations of our manufacturing network, thereby maintaining continuous supplies of drugs. In the meantime, we continue to focus on serving our patients and customers, ensuring safety of our employees and business continuity," he added.
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