Sun Pharmaceutical reports two-fold jump in net profit

Drug major Sun Pharmaceutical Industries on Thursday reported an over two-fold jump in its consolidated net profit to Rs 2,235.14 crore for the September quarter mainly on account of robust sales in India and overseas.

The company had posted a net profit after taxes, non-controlling interests, share of profit/loss of associates and joint ventures of Rs 1,028.82 crore for the same period a year ago, Sun Pharmaceutical Industries said in a filing to BSE.

Consolidated total income from operations also rose to Rs 8,265.12 crore as against Rs 6,873.29 crore for the corresponding period of the previous fiscal.

“The synergies from the Ranbaxy acquisition are gaining momentum and we are on track to achieve the targeted benefits.  These synergies will continue to help in funding our emerging specialty businesses,” Sun Pharmaceutical Industries MD Dilip Shanghvi said.

Post the close of the quarter, “we further strengthened our branded ophthalmic pipeline through the acquisition of Ocular Technologies,” he added.

Consolidated sales stood at Rs 7,764 crore for the quarter under consideration, a growth of 13 per cent over same period last year, Sun Pharma said.

India sales was at Rs 2,009 crore, up by 11 per cent over the same quarter last year. US finished dosage sales rose 9 per cent to USD 555 million. US sales include the benefit of the 180-day exclusivity for Imatinib which lasted till July 2016, it added.

Emerging markets sales at USD 170 million for the second quarter of this fiscal were up by 22 per cent over the year-ago period. Rest of World sales grew 3 per cent to USD 79 million.

The company had other operating income of Rs 501 crore which includes USD 45 million of milestone payment from Almirall S.A (Spain) as part of the licensing agreement for the development and commercialisation of Tildrakizumab for psoriasis in Europe, Sun Pharma said.

“Benefits from vertical integration impart strategic importance to our API business. We continue to increase the API supply for captive consumption for key products. For Q2 of FY17, external sales of API were at Rs 367 crore, up by 17 per cent over Q2 last year,” it added.

For the quarter under consideration, three ANDAs were filed and six approvals were received. The company’s product offering in the US market consists of approved ANDAs for 423 products while filings for 144 ANDAs await USFDA approval, including 13 tentative approvals, Sun Pharma said.

Shares of Sun Pharmaceutical Industries closed at Rs 666.95 per scrip on BSE, up 0.88 per cent from its previous close.