Sun Pharma sees ‘short-term pain’ of Ranbaxy integration cost

Sun Pharma is going through “short-term pain”, said Dilip Shanghvi, Managing Director, referring to the hit its financial performance took on account of the Ranbaxy integration.

Sun clocked a net profit of Rs.479 crore for the three months ended June 30, 2015, adversely impacted by one-time items including exceptional charges of Rs.685 crore.

This was a potential write-off towards plant rationalisation in future, Shanghvi told analysts late on Tuesday. Sun had completed its $4 billion acquisition of Ranbaxy earlier this year.

And the company had in its update late last month indicated that it would divest non-strategic manufacturing facilities.

Sun management pointed out that the exceptional charges that impacted its bottomline were related to impairment of fixed assets and goodwill and other related costs and have arisen on account of the Ranbaxy integration and optimisation measures.

Sun’s net sales for the three months under review stood at Rs.6,522 crore.

Q1 performance

Giving details of its financial performance, Sun said that its branded generic drug sales in India stood at Rs.1,784 crore, while its US finished medicines business registered revenues of $488 million.

Revenues from the emerging markets stood at $133 million, while the rest of the world markets stood at $91 million. Sun said its research spending in the quarter under review stood at at Rs.511 crore.