BSE Healthcare index of 54 pharmaceutical and healthcare companies declined sharply by 475 points and closed at 16425.12 today due to poor financial performance during the fourth quarter and year ended March 2015. Especially major players like Sun Pharmaceuticals, Cipla, Wockhardt, Ipca Laboratories, Glenmark Pharmaceuticals, Lupin, Jubilant Life Sciences and Torrent Pharmaceuticals suffered setback. However, Dr Reddy's Laboratories, Cadila Healthcare and Aurobindo Pharma improved performance despite several odds.
Sun Pharmaceutical scrip declined sharply by almost 9 per cent today and closed at Rs.878.95 on BSE.
Sun, a Rs.27,200 crore plus India's leading pharma company, has posted lower consolidated profit of Rs.888 crore during the fourth quarter ended March 2015 as compared to Rs.1,587 crore in the corresponding period of last year mainly due to merger of Ranbaxy Laboratories Ltd. The performance has impacted due to various one-time charges. EBIDTA worked out to Rs.880 crore and EBIDTA margin of 14.3 per cent. EPS worked out to Rs.3.69 as against Rs.7.66 in the last period.
Similarly, few important scrips like Fortis Healthcare, Panacea Biotec, Indoco Remedies etc declined over 3 per cent today. Fortis declined by 7.2 per cent to Rs.161.95, Panacea by 6 per cent to Rs.137.10 and Indoco by 3.9 per cent to Rs.378.30. Major scrip like Lupin declined by 2.3 per cent to Rs.1789.75, Jubilant by 1.84 per cent to Rs.171, Strides Arcolab by 2.9 per cent to Rs.1224.85 and Glenmark by 1.4 per cent to Rs.865.20.
Cipla, a Rs.10,800 crore pharma major from Mumbai, has failed to generate higher consolidated net profit during the fourth quarter ended March 2015 despite higher sales and other income. Its consolidated net profit remained flat at Rs.260 crore. EBDITA improved by 16.9 per cent to Rs.568.85 crore from Rs.486.68 crore as its other operating income improved by 24.1 per cent to Rs.112 crore. With restricted growth in profit, its EPS declined to Rs.3.24 from Rs.3.25 in the last period.
Despite significant fall in profits by over 94 per cent in fourth quarter ended March 2015, Ipca Laboratories scrip moved by 4.5 per cent to 686.10 today. Ipca, a Rs.3,100 crore plus pharma giant from Mumbai, has received major setback during the fourth quarter ended March 2015 due to US FDA import alert on three manufacturing sites, lower anti-malarial institutional business and significant currency fluctuations in the emerging markets where the company markets its branded formulations.
Glenmark Pharmaceuticals has suffered heavy setback during the fourth quarter ended March 2015 and its consolidated net profit declined sharply by 75.4 per cent to Rs.10.61 crore from Rs.43.07 crore in the corresponding period of last year mainly due to currency devaluation and subdued business environment in Russia and other countries. Wockhardt, the pharmaceutical and biotechnology major, has suffered heavy setback during the fourth quarter ended March 2015 and its consolidated net profit declined sharply by 54.2 per cent to Rs.34.08 crore from Rs.74.45 crore in the corresponding period of last year due to slower US sales. Its consolidated net sales improved only by 3.9 per cent to Rs.1,079 crore from Rs.1,039 crore. Lupin, a Rs.12,600 crore Mumbai based fourth largest pharma giant, has suffered minor setback during the fourth quarter ended March 2015 and its consolidated net profit declined by 1.1 per cent to Rs.547 crore from Rs.553 crore due to stagnant sales.
also declined by 5.8 per cent to Rs.1154 crore from Rs.1225 crore. With lower net profit, its EPS declined to Rs.7.70 from Rs.14.44.
Dr Reddy's Laboratories (DRL), a Rs.14,800 crore plus second largest pharma major in India, has posted satisfactory financial performance during the fourth quarter ended March 2015 and recommended equity dividend of 400 per cent for the year 2014-15. The company's consolidated net profit for the fourth quarter ended March 2015 increased by 7.7 per cent to Rs.519 crore from Rs.482 crore in the corresponding period of last year despite significant R&D expenditure of Rs.514 crore as against Rs.399 crore. Cadila Healthcare has posted strong growth in net profit during the fourth quarter ended March 2015 on account of higher sales and lower interest charges. Its consolidated net profit went up by 46.4 per cent to Rs.350 crore from Rs.239 crore in the corresponding period of last year. EBIDTA improved by 38.9 per cent to Rs.516 crore from Rs.372 crore. EPS worked out to Rs.17.11 as against Rs.11.68 in the last period.
Aurobindo Pharma, board of directors has recommended liberal bonus issue in the ratio of 1:1 and also recommended third interim dividend of 100% for the year 2014-15 in addition to the interim dividends of 350 per cent, aggregating to 450 per cent. Strides Arcolab has posted a standalone net profit of Rs.69.66 crore during the quarter ended March 2015 as against a net loss of Rs.48.27 crore in the corresponding period of last year mainly due to exceptional income of dividend from its subsidiaries.