Strong US sales push Sun Pharma PAT up 74% to Rs 1,531 cr

The net sales rose 50% to Rs 4,287 cr

Mumbai February 14, 2014:- Beating industry estimates, the largest Indian drug maker Sun Pharma has posted a 74% growth in net profit at Rs 1531 crore, on account of strong US formulation business.

Sales in the US were $434 million for Q3 FY14, up by 57%, accounting for 62% of total sales.

Sun Pharmaceutical’s consolidated sales for the quarter ended December 31 doubled to Rs 4,287 crore, up by 50%. According to various polls, Year-on-year revenues of Sun will go up 40% while net profit was seen a 50% growth.

Sun’s Israeli subsidiary Taro has posted net profit of $115 million, up by 30% over Q3 last year. It posted Q3 sales of $213 million, up 15%. Sun’s branded generic sales in India reported a 20% growth at Rs 947 crore while international formulation sales outside US at $84 million grew by 16%.

Sun Pharma is ranked 2nd and holds 5.3% market share in the Rs 74000-crore Indian pharmaceutical market, as per Dec-2013 AIOCD-AWACS report. On Thursday, shares of Sun Pharma were closed at Rs 614.7, up 0.07% on BSE.

Dilip Shanghvi, Managing Director, Sun Pharma said, “Our overall performance reflects the focus on execution of our strategy. We are developing a differentiated and specialty business and continue to evaluate opportunities to enhance our global presence.”

The consolidated FY14 revenue growth guidance of Sun Pharma revised to 29% compared to previous guidance of 25%.

“The revised guidance takes in to account the performance achieved in 9MFY14, higher base of Q4FY13 on consolidation of acquisitions as well the risks associated with increase in competition for some products. Guidance is at constant exchange rate,” said the statement.

Company has spent about 7% of its sales as R&D expense for Q3 FY14 at Rs 306 crore. In the third quarter, ANDA for 5 products were filed and cumulatively ANDAs for 468 products have been filed with the USFDA (as on December 31, 2013).- Business Standard