Sun Pharma maintains full year guidance of 18-20%

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Sun Pharmaceutical Industries has declared its third quarter results. The consolidated net sales were at Rs 918.27 crore versus Rs 803.97 crore on YoY basis. Its consolidated net profit was at Rs 408.64 crore.

Key takeaways from Sun Pharma concall

Q3FY09
Sales up 14% at Rs 9183 million vs Rs 8040 million
International markets contribute 52% of sales
EBITDA up 17%
EBITDA Margin at 45% vs 44%
Net profit after minority interest at Rs 4086 million, up 28% vs Rs 3183.5 million
Net profit margin - 45% vs 44%
Material cost down 19% from 23%
Staff cost up 12% from 10%
Other expenditure - 23% of net sales
EPS Rs 19.9 up from Rs 15.9/share

9MFY09
Net sales Rs 31379 million up 50% vs Rs 20994 million
International sales up 83% and mkts share 57% of sales
EBITDA - Rs 14893 million, up 89%
EBITDA margin - 28% from 38%
Net profit after minority interest - Rs 14229 million, up 86%
Net profit margin - 45% vs 36%
Material cost - 25%
Staff cost - 10%
Other expenditure - 21% vs 24%

Domestic formulation business
Q3 - Sales - Rs 4302 million, up 16%
9M - Sales up 17%
Market share - 3.5% as per IMS ORG report
Five segment cardiology, psychis 75% of domestic formulation biz

Q3 - Sales of branded prescription formulation at Rs 4302 million, up 15% - 46% of sales
9 months - Rs 13071 million, up 17%

US generics business
Continues to sell generic Protonix and Ethyol products, which had a one-off effect on US generic sales & profits

Caraco Q3
Net sales decline 32% at USD 55.7 million versus USD 81.9 million, YoY
Decrease on sale of a Para IV product (pantoprazole) contributed to lower sales
Caraco - 76% US subsidiary of Sun Pharma
Gross margin - 29% vs 28%
Net income USD 5.1 million vs USD 17 million
International branded generic - 165% vs 105%
Caraco lowered its sales guidance

Caraco 9 months
Sales - USD 286.2 million, up 80%
Net income - USD 22.9 million, drop of 4%

Sales to customers outside company - 49% for Q3 and 32% for 9M

After Barack Obama as a president in US - continues to be pro-generic

Caraco and Sun Pharma jointly 13 ANDA filed in Q3 (11 from Sun Pharma & 2 from Caraco) and 28 in 9 months
ANDAs for 6 products approved in Q3
Between Caraco and Sun Pharma, got approved 67 ANDA products
Total 109 ANDA filed and 103 awaiting approval from USFDA
7 tentative approval seen

Research & Development
Rs 946 million vs Rs 804 million in Q3 - 10% of net sales
Rs 2572 million - 8% of Net sales in 9 months
500 scientist working on project and generic business
229 patent filed and 73 patent approved

Active API pipeline builds cost competencies; cumulative of 123 DMF / CEP applications have been made; 67 approved till now.

For 9 months period - shown good revenue growth other than US region
Going ahead seen lower pharma growth

Sun Pharma maintained its consolidated business growth guidance of 18-20% (including US business)

Taro case - difficult to put timeframe in litigation issues

Current cash on books around Rs 2600-2700 crore

No need to write off inventories, as the company try to sell same things in other geograhies

For further details, listen to concall.....