Sun Pharmaceutical Industries, the fifth largest pharma company in India with consolidated net sales of Rs.4100 crore plus, has managed to improve its net profit marginally by 3.3 per cent on account of significant rise in employees cost, depreciation charges and other expenditure. Its consolidated net profit touched to Rs.350.15 crore as against Rs.338.95 crore in the corresponding period of last year. Its net sales have taken strong jump of Rs.56.8 per cent to Rs.1,601 crore from Rs.1,021 crore. Taro Pharmaceutical Industries became a subsidiary of the company from September 20, 2010. Accordingly, Sun Pharma has included the relevant results of Taro and its subsidiaries and therefore the figures are not strictly comparable with last period.
The company's other income increased to Rs.25.70 crore from Rs.9.14 crore and its net interest income improved to Rs.32.22 crore from Rs.23.31 crore. The sales of branded generic in India increased by 20 per cent to Rs.640 crore. The company launch 9 key products, taking the total for the first nine months to 30.
Sun Pharma's employees cost went up by 137 per cent to Rs.275.37 crore from Rs.116.25 core, depreciation provision by 124 per cent to Rs.80.47 crore from Rs.35.89 crore and other expenditure by 81 per cent to Rs.452.78 crore from Rs.250.47 crore. The company's R&D expenditure increased to Rs.89.56 crore from Rs.47.96 crore, a jump of 86.7 per cent. Its EBDITA increased by 23.5 per cent to Rs.466.32 crore from Rs.377.55 crore in the similar quarter of last year.
The company filed 5 ANDAs during October -December quarter and its total during the first nine months reached at 13 ANDAs. It received approval for 2 products and its total approvals reached to 12.
Dilip Shanghvi, chairman and managing director, said, “Overall performance across most markets continues to be in line with our expectation. Medium to long term priorities remain focused on building a stronger presence in our key as well as emerging markets. Towards this we continue to invest in enriching our product pipelines for each of the business segments, work towards gaining market share in key products and therapy areas as well as enhancing our capability to meet the exacting regulatory standards across the world. Improving Taro's long term sustainability and growth potential is work in progress, even as we continue to evaluate other strategic opportunities.”
The company sub-divided its one equity share of Rs.5 each into five equity shares of Rs.1 each fully paid up. The earnings per share of Rs.1 each face value worked out to Rs.3.4 as compared to Rs.3.3 in the last period.
For the nine months period ended December 2010, Sun Pharma's consolidated net sales increased by 46 per cent to Rs.4371 crore from Rs. 2994 crore in the corresponding period of last year and its net profit went up by 48.3 per cent to Rs.1418 crore from Rs.957 crore. Its earnings per share worked out to Rs.13.7 as compared to Rs.9.2 in the similar period of last year. Its formulation sales in India increased by 43 per cent to Rs.1,880 crore during the first nine months of 2010-11. Its total R&D expenditure increased to Rs.233 crore or 5.3 per cent of income from operations. It filed cumulative 201 DMF/CEP applications and received approval for 127. The total number of patent applications submitted now stands at 257 with 85 patents granted so far.
The company's US based subsidiary Caraco Pharmaceutical has recorded drop in net sales by 22 per cent to US$ 40.4 million and its net loss amounted to US$ 3 million. Its another subsidiary, Taro Pharma also registered net profit fall of 31 per cent and its net sales were lower at $7.7 million.