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Sun Pharma In The News

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Sun Pharma Q3 sales up 57%

 

Reports 3% YoY rise in net profit at Rs 350 crore, net margins decline to 22%
 
SUN Pharmaceutical Industries, the country's largest pharma company by market cap, on Monday reported 57 per cent rise in net sales at Rs 1,601.07 crore for the third quarter ended December 31, 2010 as against Rs 1,020.86 crore in the same quarter an year-ago.
 
The company said the significant increase in net sales is on account of Taro fi-nancials being included this quarter, but not in the same quarter last year. Total ex'penditure rose by 80 per cent to Rs 1,241.01 crore in Q3FY11 as compared with Rs 688.34 crore in the corresponding period last year.
 
Sun Pharma, which sells generic copies of branded medicines in India, US and several other markets, reported a 3 per cent rise in profit (after minority interest) at Rs 350 crore in Q3FY11 as against Rs 338.95 crore in the same quarter a year ago. As a result, net margins for Q3F-Yl 1 stood at 22 per cent as against 33 per cent in Q3FY10.
 
For Sun, sales of branded prescription formulations in India were at Rs 640 crore for the third quarter, a growth of 20 per cent over the same quarter last year, and accounting for 40 per cent of total sales.
 
In US, challenges still remain for Sun Pharma. This is the first quarter in which Taro financials for the entire quarter are consolidated into Sun Pharma financials. 
 
Taro, which recently announced its unaudited fi'nancials for the October-December 2010 quarter, said net sales for the quarter is at $102 million, a growth of 23 per cent over same period last year. But Taro's prof'itability in the same quarter stood at a mere $4.4 million, lower by 95 per cent when compared with the same quarter last year as this fall was primarily on account of a large tax expense in this quarter.
 
According to Dilip Sha-nghvi, CMD of Sun Pharma, "Overall performance across most markets continues to be in line with our expectations... Improving Taro's long-term sustainability and growth potential is work in progress, even as we contin'ue to evaluate other strategic opportunities."
 
Caraco, the other listed subsidiary of Sun Pharma in US, recently announced its Q3FY11 sales of $40.4 mil'lion, down 22 per cent from the same quarter last year. Caraco recorded a net loss of $3 million for Q3FY11.