Sun Pharmaceutical Industries reported 37.1% decline in consolidated net profit to Rs 399.84 crore on 14.3% rise in total revenue from operations to Rs 8,184.94 crore in Q4 March 2020 over Q4 March 2019.
The company recorded a one-time expenditure of Rs 260.64 crore as an exceptional item in the March 2020 quarter. Of the total amount, the charge of Rs 104.28 crore was due to the Supreme Court of India's judgment in a case pertaining to central excise refund claims and Rs 156.36 crore was on account of a settlement made by Dusa Pharmaceuticals, the company's US-based subsidiary, with the U.S. Department of Justice and an individual to resolve allegations relating to the sales, marketing and promotion of two of its products.
Profit before tax (PBT) stood at Rs 577.44 crore in Q4 FY20, down by 16.8% from Rs 694.24 crore in Q4 FY19. Tax expenses in the fourth quarter stood at Rs 83.09 crore. The company had written back taxes to the tune of Rs 28.81 crore in the corresponding period last year.
EBITDA stood at Rs 1,256 crore, with resulting EBITDA margin of 15.5%. Approximately 50% of the EBITDA margin decline versus Q3 FY20 is due to the adverse impact of forex loss in Q4 FY20.
In the fourth quarter, the drug maker's India formulations earnings stood at Rs 2,364.80 (up 114.7% YoY) while US formulations earnings were at Rs 2,712.88 (down 13.2% YoY). Emerging markets' sales came in at Rs 1,353.97 (up 11% YoY) and formulation sales in Rest of World (ROW) markets were at Rs 1,121.22 crore (up 4% YoY). The term 'YoY' indicates year-on-year comparison.
For Q4 FY20, external sales of active pharmaceutical ingredients (API) were at Rs 483.43 crore, flat over Q4 last year. Consolidated R&D investment fell 5.6% to Rs 536 crores in Q4 FY20, from Rs. 567.49 crores reported in Q4 last year.
Consolidated net profit jumped 41.3% to Rs 3,764.93 crore on a 13% rise in total revenue from operations to Rs 32,837.50 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 5,009.59 crore in FY20, up by 31.5% from Rs 3,810.20 crore in FY19.
Dilip Shanghvi, managing director of the company said, "I am happy to see that we are able to maintain business continuity in these challenging times, so that patients continue to get access to their much needed medications. We are also supporting various Governments in their efforts to combat Covid-19. In terms of business performance, we have done well and have started gaining market share in India. Our global specialty business has also gained reasonable traction with Ilumya recording approximately $94 million sales globally in the first full year of commercialization. Our endeavor will be to gain market share in each of our businesses by doing better, despite the near term uncertainties related to Covid-19."
The company said that the Covid-19 pandemic has resulted in most countries imposing lockdowns on almost all economic activities. The pharmaceutical sector, being a supplier of essential items, has been relatively better-off compared to most other industries. However, the drug major estimates some softening of sales in the near term due to the lockdown and stocking up by customers, although it is difficult to quantify the impact as of now.
Sun Pharma is a specialty generic manufacturing pharmaceutical company.
The stock lost 1.85% to Rs 450.55 on Wednesday. During the day, the stock fell 3.47% to hit the day's low at Rs 443.10.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
