Sun Pharma posts net profit of Rs 479 crores Q1FY16

Net sales has been registered at Rs 6,522 crores

Sun Pharmaceutical Industries has posted its financials for first quarter ending June 30, 2015. The financials for Q1FY16 include several one-time and exceptional charges related to the integration of Sun and Ranbaxy businesses, and hence are not strictly comparable with Q1FY15. Both these quarters include the financials of erstwhile Ranbaxy Laboratories Ltd.

Net sales / Income from operations stood at Rs 6,522 crores up three per cent over same quarter last year. Branded generic sales in India stood at Rs 1,784 crores up 11 per cent over Q1 last year. US finished dosage sales was at $488 million down four per cent over Q1 last year. Emerging markets sales was at $133 million down 15 per cent over Q1 last year. Rest of world sales was at $ 91 million down seven per cent over same quarter last year. R&D investments was at Rs 511 crores, an increase of 37 per cent over Q1 last year. EBITDA was at Rs 1,614 crores, resulting EBITDA margin of 24.7 per cent. EBITDA for Q1FY16 includes certain one-time charges related to restructuring and other write-offs. Excluding these one-time items, adjusted EBITDA margin was at 28 per cent compared to 30.2 per cent for Q1 last year.

Other operating income for the quarter includes the proceeds from brand divestments as mandated by various competition authorities pertaining to the Ranbaxy acquisition. Net profit for the quarter was adversely impacted by the above mentioned one-time items as well as exceptional charges of Rs 685 crores. These exceptional charges relate to impairment of fixed assets and goodwill and other related costs and have arisen on account of integration and optimisation measures. As a result, the net profit for the quarter was at Rs 479 crores.

The board has recommended payment of a dividend of Rs 3.0 per equity share of face value Re 1 each (300% of face value) for the year ended March 31, 2015, subject to approval of members.

Dilip Shanghvi, Managing Director, Sun Pharmaceuticals Industries said, “Our performance for the quarter has been impacted by certain one-time and exceptional charges which will drive synergies and overall profitability improvement in the long-term. Nonetheless, we continue to invest significantly in R&D and in building critical talent for enhancing our specialty and complex generics pipeline. As a part of this initiative, we have strengthened our ophthalmology and OTC teams in the US as well as formed a dedicated team for MK-3222, our IL-23 anti-body which is currently undergoing phase-III clinical trials.”

Dilip ShanghviquarterRanbaxy Laboratories