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Sun shines on Sun Pharma after strong Q1 results

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Capital Market
Last Updated : Aug 13 2013 | 11:58 PM IST

Sun Pharmaceutical Industries surged 4.28% to Rs 528.80 at 9:16 IST on BSE after the company's consolidated recurring net profit jumped 56% to Rs 1241 crore on 31% growth in net sales to Rs 3482 crore in Q1 June 2013 over Q1 June 2012.

The Q1 result was announced on Friday, 9 August 2013. The stock market was closed on that day on account of Ramzan Id.

Meanwhile, the S&P BSE Sensex was up 153.52 points or 0.82% at 18,942.86.

On BSE, 4,362 shares were traded in the counter as against average daily volume of 1.09 lakh shares in the past one quarter.

The stock hit a high of Rs 528.80 and a low of Rs 521 so far during the day. The stock had hit a record high of Rs 581.40 on 31 July 2013. The stock had hit a 52-week low of Rs 321.18 on 6 September 2012.

The stock had outperformed the market over the past one month till 8 August 2013, sliding 2.74% compared with the Sensex's 2.77% fall. The scrip had, however, underperformed the market in past one quarter, rising 2.95% as against Sensex's 6.01% fall.

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The large-cap pharmaceutical major has an equity capital of Rs 207.12 crore. Face value per share is Re 1.

Sun Pharmaceutical Industries (Sun Pharma) reported consolidated net loss of Rs 1276.10 crore in Q1 June 2013, as against net profit of Rs 795.55 crore in Q1 June 2012. The net loss on consolidated basis during the quarter is on account of a provision of Rs 2517 crore towards settlement for patent infringement litigation related to generic versions of 'Protonix'.

Sun Pharma's consolidated net sales grew 31% to Rs 3482 crore in Q1 June 2013 over Q1 June 2012. Adjusted for the impact of one-time sales recorded in the domestic business in Q4 March 2012, which lowered Q1 June 2012 sales, the net sales have grown by 23% year on year (YoY) in Q1 June 2013.

Branded generic sales in India grew 44% to Rs 849 crore in Q1 June 2013 over Q1 June 2012. Adjusted sales growth of the domestic formulation business during the quarter was 11%. US finished dosages sale in dollar terms rose 28% to $364 million in Q1 June 2013 over Q1 June 2012. International formulation sales grew 19% to $81 million.

Sun Pharma's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) surged 26% to Rs 1531 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin was at 44%, lower than 46% reported in corresponding previous quarter.

Dilip Shanghvi, Managing Director, Sun Pharmaceutical Industries said, "All our businesses continue to perform in-line with our expectations. We remain focused on strengthening our existing businesses and developing a differentiated and specialty driven product basket. We also continue to review opportunities to expand and strengthen our global footprint".

Sun Pharma's consolidated R&D expense for Q1 June 2013 was Rs 205 crore, which is 6% of sales.

Sun Pharmaceutical Industries is an international, integrated, specialty pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India, US and several other markets across the world. In India, the company is a leader in niche therapy areas of psychiatry, neurology, cardiology, nephrology, gastroenterology, orthopedics and ophthalmology. The company has strong skills in product development, process chemistry, and manufacturing of complex API, as well as dosage forms.

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First Published: Aug 12 2013 | 9:16 AM IST

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