Sun Pharmaceutical Industries Ltd has improved its financial position during the first quarter ended June 2004 with strong growth in revenues and profits. Its net profit has taken a jump of 37.2 per cent and touched to Rs 75.06 crore from Rs 54.69 crore in the corresponding period of last year. The earning per share, after considering rise in equity capital on account of bonus shares, worked out to Rs 4 as against Rs 5.9 in the previous period.
Its sales also moved up by 30.1 per cent to Rs 269.83 crore from Rs 207.36 crore. Domestic sales touched to Rs 207.36 crore from Rs 163.51 crore. The company improved its export performance and its exports sales increased by 42.5 per cent to Rs 62.47 crore from Rs 43.85 crore. The total income, which includes share of income from firm-amounted to Rs 49.17 crore- increased to Rs 323.32 crore from Rs 216.39 crore.
Sun Pharma, a zero interest paying company, has spent Rs 14.78 crore on R&D as against Rs 9.08 crore in the corresponding period of last year. Its total expenditure increased by 56.8 per cent to Rs 237.99 crore from Rs 151.81 crore. The company has not given any effect of merger of Phlox Pharmaceuticals Ltd as BIFR has still no approval the proposal. The management is not pursuing the proposal for merger of Hindustan Antibiotics Ltd.
According to Dilip Shanghvi, managing director of the company, "With a clear priority for international markets and research, the activities we pursue this year will enhance our capabilities on both these fronts."
The consolidated total income increased by 25.5 per cent to Rs 322.88 crore during the first quarter of 2004-'05 from Rs 257.19 crore. Its profit also went up by 38.7 per cent to Rs 88.40 crore. Domestic formulation accounted for 65 per cent of turnover at Rs 188.82 crore (Rs 128.80 crore). Total export was 21.5 per cent of turnover at Rs 62.47 crore (Rs 43.85 crore), up by 42.5 per cent. The formulation exports continued to grow for the second year at Rs 15.52 crore from Rs 11.17 crore
The company's Halol formulation site received approval from the USFDA during the quarter under review. This is in addition to the other regulated market approvals it received earlier- UK MHRA, South African MCC, Brazilian ANVISA and Columbian INVIMA. The Panoli bulk active plant received USFDA approval. This plant holds ISO9002 certification, and is approved for Europe and Australia.
The ISO 9002 and ISO 14001 certified Ahmednagar plant is approved for US and Europe. ISO certifications have also been received for the Ankleshwar and Chennai plants. The company has received 12 regulated market approvals for bulk actives and has 15 filings pending approval. With the patent filings made by the IP team this quarter, the total number of patents submitted pending approval now stands at 321, with 33 patents granted.
At the Company's R&D centre SPARC in Baroda, the progress of projects in NCE in three specific therapy areas, as well as that of platform NDDS technologies is fairly satisfactory. The first phase of the new 16-acre R&D campus in Baroda with 200,000 sq ft research floor area has commenced operations this year. The Mahakali R&D centre was commissioned this year with space for 150scientists and focus on projects for the US/ Europe both for Caraco and for Sun Pharma, and platform NDDS. The manufacturing site at Jammu was commissioned, and the new Dadra unit is now fully operational.
The company's first joint venture manufacturing unit in Bangladesh, spread over 25,000 sq ft. is close to being commissioned.