Sun Pharmaceutical Industries on May 27 reported a consolidated profit of Rs 399.8 crore for quarter ended March 2020, declining 37.1 percent YoY due to one-time loss of Rs 260.6 crore.
As exceptional item, an amount of Rs 104.28 crore, including interest, has been charged in the P&L account with respect to Central excise refund claims case. Also, the company has made provision for Rs 156.36 crore for the settlement with the US Department of Justice to resolve the sales, marketing and promotion of two of its products - Levulan and Blu-u .
Consolidated revenue during the quarter rose 14.3 percent year-on-year to Rs 8,184.9 crore, which was ahead of the average of estimates of analysts polled by CNBC-TV18 which pegged at Rs 8,015.8 crore.
On the operating front, consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 34 percent to Rs 1,363 crore and margin expanded by 250 bps to 16.7 percent, which also missed analysts expectations.
A CNBC-TV18 poll estimates for EBITDA were at Rs 1,652.3 crore and margin at 20.6 percent for the quarter.
Sun Pharma reported tax expenses for the quarter at Rs 83.09 crore against tax write-back of Rs 28.8 crore in same period previous fiscal.
Other income during Q4FY20 declined sharply to Rs 102.23 crore, compared to Rs 281.53 crore in Q4FY19.
For the full year (FY20), Sun Pharma has reported a 41.3 percent growth in profit at Rs 3,764.93 crore and 13 percent increase in revenue at Rs 32,837.5 crore compared to previous year.
Its subsidiary Taro Pharmaceuticals declared profit for the March quarter 2020 at $54.2 million, declining 7.2 percent compared to March quarter 2019.
Its net sales also declined during the quarter, down by $5 million to $174.9 million YoY.
"Despite the leading market position of many of our products, we continue to face a challenging US generic market. In the short-term, even as we commercialize recently approved products, we expect operations and profitability to be temporarily impacted as a result of the COVID-19 pandemic," Uday Baldota, Taro's CEO said.
The stock fell 19 percent during the quarter largely due to COVID-19-led market correction, but it gained 11 percent in the last one year, 6.3 percent year-to-date and 42 percent from March lows.