Sun Pharmaceutical Industries, a Rs.16,000 crore India's leading pharma company, has suffered a setback during the third quarter ended December 2014 with lower sales in international markets. Sales were impacted primarily due to temporary supply constraints arising from remediation efforts. Its consolidated net profit declined by 6.9 per cent to Rs.1,426 crore from Rs.1,531 crore in the corresponding period of last year. EBDITA declined by 6.6 per cent to Rs.1,995 crore from Rs.2,135 crore.

The consolidated net sales remained stagnant at Rs.4,280 crore as against Rs.4,287 crore. Its other operating income as well as other income declined by 48.6 per cent to Rs.82 crore from Rs.160 crore. With lower net profit, EPS declined to Rs.6.9 from Rs.7.4 in the last year. The company US sales of finished dosage declined by 5 per cent to US$ 413 million and international formulation sales outside US declined by 15 per cent to $72 million. US sales accounted for 59 per cent. However, its sale of branded prescription formulations in India improved by 21 per cent to Rs.1,150 crore. API external sales improved by 4 per cent to Rs.181 crore.

Its consolidated R&D expenditure reached at Rs.389 crore and worked out to 9 per cent of sales. This includes significant investments on account of funding the clinical development of Tildrakizumab, the psoriasis monoclonal anti-body recently in-licensed from MSD (US). The company as total ANDAs approval for 358 products while filings for 131 products await US FDA approval, including 11 tentative approvals. The total number of patent applications submitted now stands at 586 with 345 patents granted so far.

Poor financial performance put pressure on scrip movements today and it opened lower at Rs.920 as against its Friday close of Rs.939.35 on BSE. The scrip reached its intra-day high at Rs.931 and lowest at 908 in the morning session. It declined by Rs.21.60 or 2.3 per cent to Rs.917.75.

Dilip Shanghvi, managing director, said, “Our Q3 performance reflects our ability to maintain strong profitability despite temporary supply constraints resulting primarily from the on-going compliance efforts. We are currently maintaining our FY15 sales guidance.”

For the nine months ended December 2014, Sun's consolidated net sales increased by single digit by 8.3 per cent to Rs.12,957 crore from Rs.11,961 crore in the similar period of last year. The sales of branded generic in India increased by 20 per cent to Rs.3,294 crore and the sales of finished dosage in US increased by 5 per cent to US$ 1,83 million. Its international formulation sales outside US remained flat at $242 million. APIs sales for nine months declined by 2 per cent to Rs.566 crore. The company filed 266 DMFs and received total approval for 178 DMFs.

Its EBDITA moved up only by 6 per cent to Rs.6,054 crore from Rs.5,709 crore. The company provided Rs.2,517 crore for the generic Protonix litigation in the US during the nine months ended December 2013. Due to this its net profit was stated lower in that period. The net profit for the nine months ended December 2014 worked out to Rs.4,388 crore as against Rs.1,617 crore. EPS worked out to Rs.21.2 as compared to Rs.7.8 in the last period.