Sun Pharmaceutical Industries has suffered setback during the first quarter ended June 2011 and its consolidated net profit declined by over 11 per cent to Rs.501 crore from Rs.564 crore in the similar period of last year as the company included financial working of Taro Pharma in the current quarter but the same were not included in the same period of last year. The company's consolidated net sales increased by 19.9 per cent to Rs.1,636 crore from Rs.1,365 crore. With fall in profit, its earnings per share declined to Rs.4.8 for the face value of share of Rs.1 each as against Rs.5.4 in the last period. The face value of equity share change to Rs.1 from Rs.5 in the last period.
According to Dilip Shanghvi, chairman and managing director, “Performance in the first quarter is largely in line with our expectations to achieve the guidance announced earlier for 2011-12. Building a sustainable business with predictable cash flows has been our key focus to ensure the longer term success, as is borne out by these financials. This performance provides a foundation as the business looks at growth organically and through acquisitions.”
Sales of branded prescription formulations in India increased by 12 per cent to Rs.638 crore and worked out to 39 per cent of total sales. Excluding third party business which has been discontinued, underlying growth was 18 per cent. It launched 7 new product during the quarter under review. The total R&D expenditure reached at Rs.93 crore and worked out to 6 per cent of sales. It filed 6 ANDAs and cumulative filing of ANDAs reached at 383 products with US FDA. It received total approval for 232 products and awaiting approval for 151 products, including 19 tentative approvals. Further, its cumulative total of DMF reached at 209 with 132 approval as at the end of June 2011.
Taro has reported net sales of $112 million during the April-June 2011, a growth of 14 per cent. Its net profit for the quarter increased significantly to $36 million. Caraco Pharmaceutical Laboratories is now a wholly owned subsidiary of the company. Sale of generic formulations in markets outside of India and US accounted for $56 million. Taro sales outside US are included in the current quarter but not in similar period of last year.
The company's standalone net sales increased by 8.4 per cent to Rs.521 crore from Rs.486 crore in the same period of last year. The other operating income reached at Rs.342 crore as compared to Rs.260 crore. The net profit has taken a jump of 31.2 per cent and reached at Rs.423.20 crore from Rs.322.63 crore.