Pharmaceutical sector witnessed a strong 27 per cent growth in net sales for the quarter ended December 31 (Q3 FY12), led by strong US sales growth on exclusive product launches and rupee depreciation. Recovery in domestic formulations business also helped.
Overall, operating margins for pharma companies saw a hefty 520 basis points rise in Q3, led by weaker rupee and better product margins on exports. Higher inventory valuation due to favourable currency movement also helped companies to improve operating margins.
Net profit rose 51 per cent in Q3 despite mark-to-market forex losses of Rs 740 crore reported by 10 export-oriented pharma companies.
Sun Pharma’s Q3 net profits more than doubled on the back of revaluation of inventory. Dr Reddy's Lab’s (DRL) 88 per cent jump in net profit was aided by $99 million from Teva as part of the collaboration agreement to counter the authorised generic player in the market. Wockhardt recorded 51 per cent rise in net profit as operating margins expanded by 550 basis points.
Almost all leading Indian pharma companies reported strong export revenue growth last quarter.
DRL posted a robust 46 per cent rise in Q3 net sales, largely driven by the sharp 133 per cent growth in North America generic business due to 180-day exclusivity launch of Olanzapine.
Sun Pharma reported 37 per cent rise in net sales, thanks to 54 per cent increase in exports revenue, led by Taro and currency benefits.
Lupin’s 22 per cent growth in sales was driven by India, US and Japan region. Cadila’s net sales growth of 19 per cent was led by 43 per cent jump in export formulations sales.
| Net Sales | Net Profit | |||||
| YoY in % | Jun ' 11 | Sep '11 | Dec '11 | Jun ' 11 | Sep '11 | Dec '11 |
| Dr Reddy's Labs | 17.5 | 21.2 | 45.9 | 25.4 | 7.3 | 87.8 |
| Sun Pharma | 19.8 | 42.3 | 37.4 | -2.1 | 39.5 | 118.8 |
| Lupin | 17.2 | 23.6 | 21.9 | 5.9 | 23.1 | 5.6 |
| Cipla | 8.6 | 9.6 | 14.0 | -1.6 | 17.5 | 16.0 |
| Cadila Health. | 11.2 | 10.2 | 19.2 | 15.4 | -35.5 | -7.7 |
| Aurobindo Ph | 16.8 | -3.4 | 7.7 | - | - | - |
| Wockhardt | 14.3 | 18.1 | 27.1 | - | - | 51.3 |
| Jubilant Life | 15.5 | 22.0 | 25.5 | 56.8 | 22.1 | - |
| Glenmark Ph. | 27.4 | 45.9 | 37.7 | 23.2 | -35.2 | -46.7 |
| Torrent Ph. | 16.7 | 19.2 | 21.8 | 38.2 | 32.3 | 9.1 |
| Total | 17.4 | 19.8 | 25.3 | 16.7 | 31.8 | 15.8 |
