Leading pharmaceutical player Sun Pharmaceutical Industries reported a consolidated net profit of Rs 1,391 crore for the first quarter of 2014-15. The company had reported a loss of Rs 1,276 in the first quarter of 2013-14 due to provision of Rs 2,517 crore towards settlement for patent infringement litigation.
The company’s net sales for the quarter grew 13 per cent to Rs 3,927 crore, operating profit grew 13 per cent to Rs 1,724 crore while operating margin was unchanged at 44 per cent.
Sun’s branded generic sales in India grew 17 per cent at Rs 992 crore.
Sun’s US sales grew 7 per cent to $ 389 million and accounts for 58 per cent of total sales while international formulation sales outside the US grew 2 per cent at $ 82 million. Overall, international revenues accounted for more than 75 per cent of total revenues during the quarter.
In a statement, Dilip Shanghvi, MD of Sun said, ``Our Q1 performance was in line with our expectations.’’
The company said its external sales of active pharmaceutical ingredients (API) declined 10 per cent to Rs 174 crore. ``On the other hand, we increased the API supply for captive consumption significantly for key products which enabled us to enjoy the benefits of strategic vertical integration,’’ the Sun statement said.
Sun’s consolidated R&D expense for the quarter was 6.6 per cent of sales at Rs 257 crore. In the US market, the company has Abbreviated New Drug Applications (ANDAs) approved for 350 products with filings for 140 products awaiting US FDA approval.
Sun’s proposed acquisition of Ranbaxy Labs requires approvals from multiple regulatory agencies and shareholders. To date, clearances have been obtained from the stock exchanges in India and from anti-competition authorities in all applicable markets excluding India and USA, the company said.
``While we are intensively planning for the integration with Ranbaxy, we remain focused on strengthening our existing businesses and developing a differentiated and specialty driven product basket,’’ Mr. Shanghvi said.
On the BSE, Sun scaled a 52-week high of Rs 803.7 before close up 2.09 per cent at Rs 800.25.
