Sun Pharmaceutical Industries today posted an over three-fold jump in its consolidated net profit at Rs 1,416.60 crore for the December quarter, driven by robust sales in domestic as well as international markets.
The drug major, which had posted a net profit of Rs 395.33 crore during the same period last fiscal, also said that it will 'mutually wind down' its joint venture with MSD Pharma's wholly-owned subsidiaries.
Net sales of the company rose to Rs 7,046.57 crore for the third quarter as against Rs 6,885.46 crore in the same period of the previous fiscal, Sun Pharma said in a regulatory filing.
"Our results for third quarter indicates sequentially improving quality of business and performance. This is despite adverse currency movements and increase in R&D investments," Sun Pharma Managing Director Dilip Shanghvi said.
The synergy benefits of the Ranbaxy acquisition have begun to reflect in the company's financials, he added.
"We remain committed in allocating required resources for enhancing our specialty and complex generics pipeline," Shanghvi noted.
The company's sale of branded formulations in India for third quarter stood at Rs 1,890 crore, up 8 per cent from the corresponding quarter last year and accounting for 27 per cent of total sales.
"Withdrawal of bonus offers continues to adversely impact sales in the acute segment," it added.
Sun Pharma's sales in the US stood at USD 486 million for the third quarter, a reduction of 11 per cent over the same period last year and accounted for 45 per cent of total sales.
"Sales for the quarter were impacted primarily due to competitive pressure on some products and temporary supply constraints arising from remediation efforts at the Halol facility," it said.
However, the company partly benefitted in same period last year from the 180-day exclusivity on Valsartan tablets in the US resulting in a higher base.
The company said its sales in emerging markets stood at USD 151 million for the third quarter, a decline of 7 per cent from the corresponding quarter.
"The decline is largely a result of volatile currency movements in certain emerging markets and a strategic decision of not participating in some low margin businesses," it added.
On the winding down of JV, the company said: "Sun Pharma and MSD's wholly owned subsidiaries have mutually decided to wind down their joint venture established in 2011, due to changes in the strategic priorities of both parent companies."
There will be no material impact of this development on Sun Pharma, it added.
"Both the partners continue their collaboration for other business relationships including the strategic India-specific co-marketing partnership for Sitagliptin and the global Tildrakizumab programme," Sun Pharma said.
As per December-2015 AIOCD-AWACS report, the Mumbai-based firm is ranked at the top with around 8.8 per cent market share in the Rs 96,000 crore pharmaceutical market.
Sun Pharma shares today ended at Rs 848.35 apiece on the BSE, up 2.09 per cent from the previous close.
