Sun Pharma net profit rises 17% to Rs218 cr

Sun Pharma net profit rises 17% to Rs218 cr

The country’s largest drug maker by market cap, Sun Pharmaceutical Industries Ltd, posted a 17% growth in net profit at Rs218 crore with a consolidated sales of Rs667.9 crore in the quarter ended 30 September.

The pharma company’s sales grew by 25% compared with Rs536.2 crore in the year- ago quarter. The growth in sales and profits is mainly due to strong earnings from the US generics or off-patented drugs market, and also a general growth in the domestic branded drugs market space.

“We’ve had a strong quarter powered by growth across all segments of our business, solid domestic growth, and a fundamentally strong US generics business," Sun Pharma chairman and managing director Dilip Shanghvi said. “An overall growth in the international markets mainly with the support of recent US approvals with marketing exclusivities for our products helped better earning through out the first half."

Sun Pharma shares on Thursday closed at Rs1,016—up by 1.94 %—on the Bombay Stock Exchange.

“The company had about a dozen new international approvals in this year, which boosted the total earning significantly despite a rupee appreciation, though it impacted many of the industry peers’ export earning," said an industry analyst , who is not authorized to make scrip-specific comments. Sun Pharma also continued its strong performance in domestic formulations space at Rs3,72 crore—up 31% growth over the corresponding quarter last year.

Domestic sales contributes about 54% to the pharmaceutical company’s total sales.

“We maintained a stable growth in an increasingly competitive market," said Shanghvi. Sun Pharma is the largest player in the country’s psychiatry, neurology and cardiology drug segments.

It’s overall market share is currently 3.3%, as per the latest report of drug retail audit firm ORG IMS Research Pvt. Ltd. Sun Pharma’s earnings before income, taxes, depreciation and amortization (Ebitda) was up by 41% in the second quarter of the fiscal year, compared to the year-ago period. The company also spent Rs71.3 crore on research and development.