Sun Pharmaceutical Industries Ltd achieved better performance during the third quarter ended December 2004 despite one time provision related to the issue of FCCB and higher R&D expenses.
Its standalone net profit increased by 14.6 per cent to Rs 80.72 crore from Rs 70.46 crore in the corresponding period of last year. Its sales increased by 22.8 per cent to Rs 292.58 crore from Rs 238.27 crore. With the improvement in profitability, its earning per share for the quarter moved up to Rs 4.4 from Rs 3.8.
Commenting on the financial working of the company and future plans, Dilip Shanghvi, managing director, said, "With stable and growing revenue streams from India, rapidly increasing international business and enhanced research capability for managing innovation, we stand well placed to participate in any emerging opportunity."
The company issued Zero coupon FCCB aggregating to US$ 350 million during the quarter and charged Rs 15.76 crore as management fees for the FCCB issue. It incurred R&D expenditure of Rs 29.96 crore during the third quarter, which worked out to 10.8 per cent of total turnover. The company's new R&D centre-SPARC- at Baroda was inaugurated. The company's joint venture manufacturing plant in Bangladesh and the subsidiary in Mexico started operations in the third quarter of 2004-'05. The total number of patents submitted pending approval now stands at 372, in addition to 33 patents granted.
The company's standalone sales for the nine months ended December 2004 increased by 20.1 per cent to Rs 823.67 crore from Rs 686.10 crore. Other income including share from firms amounted to Rs 170.76 crore as against Rs 66.87 crore in the previous years' nine months. With substantial rise in other income helped the company to push its net profit by 22.9 per cent to Rs 235.07 crore from Rs 191.20 crore. Consolidated R&D expenses or the nine months period reached at Rs 101.17 crore (Rs 83.57 crore) in the previous period) worked out to 9.8 per cent of turnover.