Taro Pharma Q1 profit jumps 125%, sales volumes decline 10%

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26 Aug, 2025 12:21

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Moneycontrol BureauTaro Pharma, the subsidiary of country's largest drug company Sun Pharmaceutical Industries, has registered a 125.2 percent growth in net profit at USD 103.6 million in June quarter compared to USD 46 million in the year-ago period. The bottomline was boosted by strong revenue and operational performance but sales volumes declined during the quarter.

Revenue grew by 65 percent to USD 215 million compared to USD 130.2 million year-on-year. The NYSE-listed company said revenue in Q1FY15 was negatively impacted by a USD 79 million provision for price protection. June quarter’s price protection provision was USD 14 million, it added.

However, sales volume decline 10 percent as a result of increase in competitor activity in the US.

"We remain cautious of the ever-increasing pressure on business from strong competition and the continuing industry and customer consolidations," said Kal Sundaram, Taro’s CEO.

Operating income shot up 147 percent year-on-year to USD 134.4 million, helped by benefits realised from price adjustments in prior year. Operating margin expanded by 2070 basis points to 62.5 percent during the quarter.

Research & development and selling, marketing, general & administrative expenses remained relatively flat in June quarter.Parent company Sun Pharma will announce its earnings on August 11, which are expected to be subdued as it already guided for FY16 revenue to remain flat or record marginal decline compared to FY15.

At 09:51 hours IST, the scrip of Sun Pharmaceutical Industries was quoting at Rs 854.40, up Rs 7.90, or 0.93 percent on the BSE.Posted by Sunil Shankar Matkar