Sun Pharmaceutical Industries Ltd. on August 3 reported a 1.9 percent year-on-year (YoY) fall in its consolidated net profit at Rs 2,022.5 crore for the April-June quarter. It reported consolidated net profit of Rs 2,060.8 crore for the same quarter last year.
With this the drugmaker's net profit also lagged Moneycontrol's estimate of Rs 2,119.4 crore. It was a one-time exceptional loss of Rs 322.87 crore. Excluding the exceptional loss, the net profit came around Rs 2,345.4 crore, up 13.8 percent year-on-year.
The Mumbai-based drugmaker also reported a 11 percent increase in consolidated revenue at Rs 11,941 crore from Rs 10,761.7 crore in the year-ago period. The Street had pegged revenue at Rs 11,606.5 crore.
The company reported EBITDA of Rs 3,332 crore for the quarter as against Rs 2,884.4 crore in the corresponding quarter last fiscal. The EBITDA margin for the quarter is 27.9 percent, up 230 basis points from the same period a year ago.
The company has reported R&D investments at Rs. 679.6 crore compared to Rs. 460.8 crore for the same quarter last year. The company also informed that its specialty R&D pipeline includes five molecules undergoing clinical trials.
“All our business continued to have growth this quarter and we are well positioned to meet our growth guidance for FY24. US has led the revenue growth in Q1 and global specialty has continued to increase as a share of our revenues," said Dilip Shanghvi, Managing Director of the Sun Pharma in a press statement.
Sales of formulations in India for Q1FY24 were at 3,560.4 crore, up 5.1 percent over the same period last year. India formulation sales accounted for about 30 percent of total consolidated sales. Sales in the US were at $47.1 million recording a growth of 12 percent over the base period.
Exceptional losses of Rs 322.87 crore for the quarter ended June 30, 2023 includes a charge off Rs 149.21 crore towards impairment of an acquired intangible asset under development. The company also had an exceptional foreign exchange loss off Rs 122.92 crore pertaining to Ranbaxy Nigeria Limited on account of devaluation of Naira (Nigerian currency) against US Dollar subsequent to changes in Nigerian Foreign exchange market regulations by the Central Bank of Nigeria.
The impact of the planned relocation of Alchemee operations from California to New York and consequent one-time transitional expenses amounting to USD 6.2 Million (equivalent to Rs 50.74 crore) were also reported in this quarter.
The results had revealed that global specialty sales accounted for 16.2 percent of the Apr-Jun quarter consolidated sales, and it was up 21 percent compared with the same quarter last year. Overall sales in Emerging Markets accounted for about 18% of total consolidated sales for the quarter.
The shares had hit a 52-week high of Rs 1169.70 ahead of the result announcement. However, the stock came sharply off its highs following the release of the results and at 3.08 pm, were trading less than a percent higher at Rs 1,144.75.
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