Sun Pharma posts Rs 1,064 crore net profit in September quarter, India sales up 35%

Pharma major Sun Pharmaceutical Industries on Thursday reported a consolidated net profit of Rs 1,064.09 crore for the second quarter ended September 30, 2019.

"The Mumbai-headquartered drugmaker had reported a net loss of Rs 269.60 crore in the September quarter of FY19 (Q2FY19)," Sun Pharma said in a filing to the Bombay Stock Exchange.

The healthcare firm's consolidated net sales grew 16.10 per cent to Rs 7,949.19 crore as against Rs 6,846.48 crore in the corresponding quarter.

India sales, which accounted for 31.6 per cent of total consolidated sales, rose 35 per cent year-on-year (YoY) to Rs 2,515 crore in September quarter of this fiscal. For the first half, sales were at Rs 4,828 crores, up by 20 per cent over same period last year. For Q2FY20, the company launched 12 new products in the Indian market.

"Sun Pharma is ranked No. 1 and holds approximately 8.2 per cent market share in the over Rs 132,000 crore Indian pharmaceutical market as per AIOCD AWACS June-2019 report," the drug major said in the exchange filing.

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Sales in the US were $424 million for the quarter, flat over same period last year and accounted for 30 per cent of total consolidated sales. For first half sales were $ 763 million recording a growth of 6 per cent over same period last year.

While emerging markets sales stood at $201 million, up by 3 per cent Q2 last year, rest of world sales was at $161 million, growth of 49 per cent on the yearly basis.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was at Rs 1,616 crore up by 12 per cent over Q2 last year, with resulting EBITDA margin of 20.3 per cent.

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Consolidated research and development (R&D) investment for Q1FY20 was Rs 422 crore, or 5.1 per cent of sales compared to Rs 500 crores or 7 per cent of sales for Q1 last year.

Commenting on Q2 earnings, Dilip Shanghvi, Managing Director of Sun Pharmaceutical Industries 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," he added.

Following Q2 earnings, shares of Sun Pharmaceutical Industries were trading 3.50 per cent higher at Rs 442.50 apiece on the Bombay Stock Exchange.

Edited by Chitranjan Kumar