MUMBAI: Sun Pharmaceutical Industries today reported a 123 per cent year-on-year rise in its consolidated net profit for the quarter ended March to Rs 894.2 crore, which was sharply below analysts’ estimates of Rs 1,513 crore.
The big miss on the bottomline by the company was a result of an exceptional loss worth Rs 672.8 crore related to various litigation settlements pertaining to some of its subsidiaries.
The company’s consolidated revenue from operations rose merely 4 per cent on-year to Rs 8,523 crore, which was also below analysts’ expectations of Rs 8,712.5 crore.
The company’s board approved a final dividend payment of Rs 2 per share for the financial year ended March.
The company said that during the quarter, it made an additional provision worth $80 million pertaining to its subsidiary Taro Pharmaceutical Industries’ settlement on a US Department of Justice investigation.
The muted topline performance of the company was largely due to a weak quarter in the US, given the high base of the year-ago quarter where the company benefited from the panic stocking of medicines in the country. Sales in the US declined 1.3 per on-year to $370 million.
In India, sales in the reported quarter rose 13 per cent on a year-on-year basis to Rs 2,670.9 crore, reflecting the effect of a weak base in the year-ago quarter, when the national lockdown hit performance.
In emerging markets, the company’s sales in the quarter grew merely 2.8 per cent on-year to $192 million, whereas the same in rest of the world markets rose 5.5 per cent to $163 million.
“While our India business continues to outperform the average industry growth, our global specialty sales have continued to show an improving trend. Global Ilumya sales for the year have grown by 51 per cent to $143 million,” said managing director Dilip Shanghvi in an earnings statement.
The operating performance of the company in the quarter was strong as consolidated earnings before interest, tax, depreciation and amortization climbed 55.8 per cent on-year to Rs 1,956.8 crore. The consolidated operating margin stood at 23.2 per cent.
Sun Pharmaceutical spent Rs 557 crore on research and development during the quarter, which was 6.6 per cent of the overall sales.
Shares of the drug maker ended 0.7 per cent lower at Rs 698.85 on the National Stock Exchange.