Sun Pharmaceutical Industries, the third largest pharma company from Vadodara, has registered impressive financial performance during the first quarter ended June 2012. The company now decided to spin off its domestic formulation business on a going concern basis comprising certain assets pertaining to the said business to its wholly owned subsidiary Sun Resins and Polymers Pvt Ltd with effect from March 31, 2012 after certain approvals.

Sun Pharma's consolidated net profit has taken quantum jump and touched to Rs.796 crore from Rs.501 crore in the corresponding period of last year, a growth of 58.8 per cent. Its consolidated net sales also increased by 62.5 per cent to Rs.2,658 crore from Rs.1,636 crore. With strong growth in profits, its earnings per share worked out to Rs.7.7 as against Rs.4.8 in the last period. EBDITA went up by 84.7 per cent to Rs.1,215 crore from Rs.658 crore.

The board of directors has declared an interim dividend at the rate of Rs.4.25 per equity share of Rs.1 each for the year ended March 2012 in lieu of the earlier proposed dividend of Rs.4.25 per share for the year ended March 2012.

Dilip Shanghvi, managing director, said, “Over the years, we have focused on building a consistent, predictable and profitable business. The performance this quarter is once again a reflection of this strength. The year has begun well as we have reported strong underlying growth across all our business segments.”

The company's sales of branded generic in India declined by 8 per cent to Rs.588 crore. It launched 9 new products in the first quarter. Its sales in US increased by 105 per cent to $285 million. Sales of Caraco increased by 185 per cent. Taro recently posted first quarter sales of $159 million, representing a growth of 43 per cent. Formulation sales in RoW markets, outside of India and US, accounted for $68 million and improved by 20 per cent during the first quarter ended June 2012.

Its API business continues to expand and support the strategic vertical integration objective. A cumulative of 228 DMF/CEP applications have been made, with 162 approved so far. External sales of API, accounting for a minority of the overall API produced reached at Rs.200 crore, registering a growth of 36 per cent over the same period of last year. Its R&D expenditure worked out to 5 per cent of sales at Rs.139 crore. It filed 1 ANDA and so far Sun Pharma and Taro filed 391 products with US FDA. It received approval for 6 ANDA, taking the total number of approvals to 256 ANDAs and 135 products are awaiting approvals. The total number of patent applications submitted now stands at 638, with 304 patents granted so far.