Despite the Russian and the southeast Asian crisis Sun Pharmaceutical's exports surged 76 per cent to Rs 65.47 crore in the year ended March 31, 1991. Domestic sales rose 26 per cent to Rs 289.65 crore pushing the total sales growth to 40 per cent.
The company's operating margins also climbed to 20 per cent from 18.35 per cent in the previous year. This was despite an extraordinary expense of 60 lakh incurred towards Y2K compliance.
Net profit rose 9.6 per cent at Rs 61.36 crore. The hiving-off of Sun Pharmaceutical Exports into a 100 per cent subsidiary and increase in interest burden affected the bottomline.
Sales and profits were routed through the partnership firm and the same was not well received by the markets.
All high-margin exports were earlier routed through this firm. The company has reported a profit of Rs 7.5 crore during this period.
This amount would have added to Sun's profitability and the bottomline would have been higher by 22 per cent at Rs 68.45 crore as against the Rs 61.36 crore declared.
Sun Pharma has a range of products in its basket. It derives nearly 60 per cent of its turnover from the neurology, psychiatry and cardiology segment.
Sun has concentrated on high-margin specialty drugs sector which is growing at over 20 per cent. Thus, many of the products command a considerable premium over its competitors.
Sun has been aggressive in launching new products in all the three segments successfully.
Sun's future growth looks bright considering that 30 per cent of the sales come from new product launches. The latest launch, Movera, is doing well and Sun expects it to be among the top five of its portfolio.
Sun Pharma has charted an aggressive growth plan via acquisitions. It recently amalgamated with Milmet Labs to further increase its presence in the therapeutic segment.
Besides, the Natco brands brought in November last year has been included in its new division, Solares Therapeutics.
