Sun Pharmaceutical Industries, a leading Indian pharma giant with net sales of over Rs.30,000 crore, has suffered a major setback during the fourth quarter ended March 2017 due to lower sales in US. Its consolidated net profit declined by 13.6 per cent to Rs.1,224 crore from Rs.1,416 crore in the corresponding period of last year. Its consolidated sales declined by 8 per cent to Rs.6,825 crore from Rs.7,416 crore. With lower net profit, its EPS declined to Rs.5.2 from Rs.5.9 in the last period. The board of directors has recommended equity dividend of Rs.3.5 per share of face value of Rs.1 each.
Due to poor performance, Sun Pharma scrip opened lower at Rs.532.80 today on BSE as against previous close of Rs.568.55. It went down further and touched to its yearly lowest level at Rs.493. In the afternoon session, Sun scrip was quoted at Rs.507.80, de-growth of over 10.7 per cent.
For the full year ended March 2017, Sun Pharma's consolidated net sales improved only by 8.5 per cent to Rs.30,264 crore from Rs.27,888 crore in the previous year. Its net profit moved up 53 per cent to Rs.6,964 crore from Rs.4,546 crore due to significant growth in other operating income which went up to Rs.1,314 crore from Rs.599 crore in the last year. The net profit growth impacted due to one-time items as well as exceptional charges of Rs.685 crore. Its interest cost also declined to Rs.400 crore from Rs.523 crore. EPS for the full year improved to Rs.29 from Rs.18.9 in the last year.
The company's domestic sales increased by 8 per cent to Rs.7,749 crore. However, its US sales remained flat at US$ 2,051 million. US sales include the benefit of the 180-day exclusivity for Imatinib. Its sales in emerging markets improved by 23 per cent to $675 million and that in Rest of World improved by 17 per cent to $385 million. API sales were up by 14 per cent to Rs.1,598 crore, partly driven by the consolidation of the Australian Opiates business.
Dilip Shanghvi, managing director, said, “Our Q4 performance reflects the impact of the challenging generic pricing environment in the US. Despite this, we continue to invest our strong cash flows in enhancing our specialty pipeline. In Q4, we announced the acceptance of Tildrakizumab filing by EMA for European markets and for US market in May 2017. We will be gradually filing Tildrakizumab in all key markets in the next few quarters. We recently had a pre-NDA meeting with the US FDA for Seciera and we are on track to file this NDA by Q3FY18. We continue to evaluate filing Seciera in other markets. During the quarter, the US FDA lifted the import alert on the Mohali facility while remediation efforts are on=-going to bring back the Halo0l facility into full cGMP compliance.”
Its R&D expenditure reached at Rs.2,314 crore and worked out to 7.6 per cent of its sales. This R&D expenditure includes investments on account of funding the clinical development of our global specialty pipeline. The company has a comprehensive product offering in the US market consisting of approved ANDAs for 427 products while filings for 157 ANDAs await US FDA approval, including 16 tentative approvals. Additionally, the pipeline includes 36 approved NDAs which 5 NDAs await US FDA approval.
Sun pharma
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