Sun Pharmaceuticals Industries Ltd on May 30 reported a surprise loss for the quarter ended March 2022 (Q4FY22), hit by one-time charges.
The Mumbai-based company posted a net loss of Rs 2,227.38 crore for the quarter under review, compared to the net profit of Rs 848 crore a year ago. Revenue for the quarter rose 11% from a year ago to Rs 9,386.08 crore.
According to a Bloomberg poll, the firm expected to report a profit of Rs 1,707 crore while revenue was expected at Rs 9,576 crore.
Exceptional items for the quarter stood at Rs 3,935.75 crore against Rs 672.81 crore last year. Exceptional items include settlements, and provisions related to Taro Pharmaceuticals, and Ranbaxy.
Sun Pharma’s sales in the US, which accounted for 31% of the total sales, rose 5% on year to $389 million. The drug maker’s sales in India were up 16% at Rs 3,095.60 crore, while sales in emerging markets grew 7% to $206 million in the quarter under review.
"FY22 was a good year with strong topline and EBITDA growth. All our geographies have recorded double-digit growth and profitability has improved despite rising costs. The specialty business continues to ramp up strongly with global Ilumya sales recording 81% growth to reach US$315 million in FY22", said Dilip Shanghvi, Managing Director of the company.
"Our India business continues to grow faster than the market, leading to an increase in market share. We continue to focus on expanding our global specialty business, growing all our businesses, and improving operational efficiencies”, Shanghvi added.
The company’s spending on research and development stood at Rs 543.30 crore from 557.10 crore a year ago. EBITDA for the quarter rose 15% to Rs 2,279.70 crore. The firm repaid $355 million debt in the fiscal year 2022.
"Our R&D efforts span across both specialty and generic businesses and we continue to invest in building the pipeline for various markets including the US, Emerging Markets, RoW Markets, and India. Our specialty R&D pipeline includes 4 molecules undergoing clinical trials", the firm said.
During the quarter, external sales of active pharmaceutical ingredients were at Rs 413.70 crore, down 5% from a year ago. " Our API business imparts benefits of vertical integration and continuity of supply chain for our formulation business. We continue to focus on increasing API supplies for captive consumption relating to our key product", the company said in a release.
The company has a comprehensive product offering in the US market consisting of approved ANDAs for 512 products while filings for 93 ANDAs await US FDA approval, including 28 tentative approvals. Additionally, the portfolio includes 54 approved NDAs while 13 NDAs await US FDA approval. For the quarter, 7 ANDAs and 1 NDA were filed while approvals included 1 ANDA and 1 NDA.
During the quarter, Taro posted sales of $143 million, down 3% year-on-year, and a net profit of about $27.4 million, down 11.6%.The firm reappointed Dilip Shanghvi as a managing director for a further term of five years and Pawan Goenka was appointed lead independent director with immediate effect. Gautam Doshi was also reappointed as an independent director for the second term.