Sun Pharma Q2 net falls 46% to Rs 320 cr on one-time loss

Healthcare firm Sun Pharmaceutical Industries' net profit fell 46.5 percent year-on-year to Rs 320 crore in the second quarter of current financial year, impacted by the provision for Protonix generic.

The company has booked the one time loss of Rs 583.6 crore for the quarter due to patent infringement over Protonix.

"With respect to patent infringement litigation related to generic versions of 'Protonix', the company continues to believe that it has sound reasons to disagree with the overstated claims by Wyeth. The company also believes that the patent is invalid and unenforceable and will pursue all available legal remedies including appeals. However, as a matter of prudence and as estimated by the management on a consolidated level a sum of Rs 583.58 crore has been provided towards potential damages in this regard in the second quarter." Sun Pharma said.

Consolidated net sales rose by 40 percent to Rs 2,657 crore from Rs 1,894.6 crore during the same period.

Numbers were in-line with forecast (excluding one-time loss). Analysts on an average had expected net profit of Rs 835 crore on revenues of Rs 2,764 crore for the quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 50 percent YoY to Rs 1,175 crore in the quarter. Operating profit margin improved by 280 basis points YoY to 44.2 percent in the quarter ended September 2012.

Tax expenses increased to Rs 214 crore from Rs 128 crore during the same period.

At 14:40 hours IST, the stock erased losses, losing 0.17 percent to Rs 700.25 on the Bombay Stock Exchange.