Sun Pharma's research arm posts profit for the first time since June 2020; revenue doubles

In December 2022, Sun Pharmaceutical Industries Limited received an import alert for its Halol facility from US FDA.

Sun Pharma Advanced Research Company's (SPARC) net profit for October-December 2022 quarter came in at Rs 10.15 crore against a loss of Rs 15.84 crore in the same period a year-ago.

In fact, the company returned to black after posting losses for nine back-to-back quarters. The last time it posted a quarterly profit was in June 2020 at Rs 58 crore.

Meanwhile, revenue from operations doubled year-on-year to Rs 131 crore from Rs 62 crore.

The strong Q3 results set the stock soaring in afternoon trade. It ended at Rs 219.60 apiece, higher by 16.50 percent after starting the day flat on February 13.

In December 2022, Sun Pharmaceutical Industries Limited (SPIL) received an import alert for its Halol facility from US FDA. However, this has not affected SPARC's financials.

"The company earns royalty income on certain products which are manufactured at Halol facility. Consequent to this development, management has assessed and concluded that there is no material impact in the unaudited financial results for the quarter and nine months ended December 31, 2022. The company will continue to monitor further developments on this matter," SPARC said in the exchange filing.

SPARC was demerged from the parent entity in 2007 and was listed as a separate entity. It is a clinical-stage biopharmaceutical company, with a focus on lowering costs and improving operational efficiencies to advance availability and affordability of cures for patients across the world.