Sun Pharma posts Q1FY18 results

Sun Pharmaceutical Industries has posted its financials for the first quarter ending June 30, 2017. Sales / income from operations is at Rs 6,167 crores, showing a de-growth of 23 per cent over same quarter last year. India sales is at Rs 1,761 crores, down by five per cent over Q1 last year. US finished dosage sales is at $351 million down by 42 per cent over Q1 last year. US sales for Q1 last included the benefit of the 180-day exclusivity for Imatinib which expired in July-2016. Emerging markets sales is at $168 million up by nine per cent over Q1 last year. Rest of World sales at $115 million, a growth of 37 per cent over Q1 last year. R&D investments is at Rs 522 crores (8.5 per cent of sales) compared to Rs 531 crores (6.6 per cent of sales) for Q1FY17.

EBITDA is at Rs 1,054 crores, resulting EBITDA margin of 17.1 per cent. Net profit for the quarter was adversely impacted by settlements with certain plaintiffs related to the Modafinil antitrust litigation in the US, with the settlement amounting to Rs 950 crores. Excluding the Modafinil settlement, the company’s adjusted net profit for Q1FY18 was at Rs 526 crores, down 74 per cent over Q1 last year, with resulting adjusted net profit margin of 8.5 per cent. Net profit for Q1 last year included the benefit of the 180-day exclusivity for Imatinib which expired in July-2016. These results were taken on record by the Board of Directors at a meeting held in Mumbai.

Dilip Shanghvi, MD, Sun Pharma said, "Our Q1 performance was not good and not in line with our past performance due to the combined impact of increasing investments in our global specialty business, temporary disruption in our India business due to GST implementation, a challenging US generic pricing environment and the Modafinil settlement. We expect our performance to gradually improve in the second half of this year."