Sun Pharma Q1 profit at Rs 983 crore, beats analysts’ estimates

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New Delhi, Aug 14: Sun Pharma reported a consolidated net profit of Rs 982.8 crore in the first quarter ended June, beating analysts’ estimates on strong India and US sales.
In the same quarter last year, the largest drugmaker in India had reported a net loss of Rs 423 crore. Profit in that quarter was adversely impacted by the settlement with certain plaintiffs related to the Modafinil antitrust litigation in the US, with the settlement amounting to Rs 951 crores.
Adjusted net profit excluding the impact of this settlement was around Rs 525 crore. Q1FY19 profit is 87 percent higher year-on-year (YoY) on this adjusted profit.
Revenues for Q1FY19 rose 16.7 percent YoY to Rs 7,423.9 crores from Rs 6,360.8 crore in the year-ago period.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) margin for the quarter was 21.3 percent. A Reuters poll had forecast a rise in net profit to Rs 900 crore. It estimated a revenue gain of 12.8 percent YoY to Rs 6,957 crore.
“For Q1, we have recorded good growth in all the major markets. We are gradually crossing key milestones in our specialty initiatives with the recent commercialization of Yonsa in the US and targeted launch of Ilumya and Cequa in the coming quarters,” Dilip Shanghvi, Managing Director of Sun Pharma.
Shanghvi added the drugmaker is awaiting approvals from the US Food and Drug Administration (US FDA) for two specialty products, Xelpros and Elepsia, filed from Halol.
“With all these specialty launches lined-up, a substantial portion of our current specialty pipeline will be on market. We are creating a deep pipeline of specialty products, however, during the year these launches will result in significant upfront investments,” Shanghvi said.
Sun Pharma said it continued to evaluate opportunities in the specialty segment to further enhance this business. While the US generic sales grew 8 percent YoY to $380 million in Q1FY19, India sales grew 22 percent to Rs 2,152 crores. The US accounts for 36 percent of the company’s sales and India accounts for 30 percent. Sales for Q1 last year were impacted by the implementation of GST in India.
Emerging markets sales rose 16 percent to $195 million over the previous year. Sales across rest of the world dropped 7 percent YoY to $107 million.
R&D investments stood at Rs 500 crores or 7 percent of sales.
In the US, Sun Pharma has 428 ANDA products approved while filings for 135 ANDAs await approval, including 15 tentative approvals.