Sun Pharma posts net profit of Rs 912 crores in Q2FY18

According to the agreements entered into between the parties, a wholly-owned subsidiary of Sun Pharma will acquire the portfolio consisting of 14 established prescription brands from Novartis for a cash consideration of $293 million.

Posts gross sales of Rs. 6,590 crores in the same quarter

Sun Pharmaceutical Industries has posted its financials for the second quarter and first half ending September 30th, 2017.

In Q2FY18 consolidated financials, sales / income from operations was at Rs 6,590 crores, showing a de-growth of 15 per cent over same quarter last year. India sales is at Rs 2,221 crores, growth of 11 per cent over Q2 last year; the US finished dosage sales is at $ 309 million down by 44 per cent over Q2 last year. The emerging markets sales is at $ 196 million up by 16 over Q2 last year. Rest of World sales is at $ 111 million, showing a growth of 40 per cent over Q2 last year. R&D investments is at Rs 511 crores (7.7 per cent of sales) compared to Rs 570 crores (7.4 per cent of sales) for Q2FY17. EBITDA is at Rs 1,315 crores, resulting EBITDA margin of 20 per cent. Net profit for the quarter is at Rs 912 crores, down 59 per cent over Q2 last year, resulting net profit margin of 14 per cent.

In H1FY18, the company’s sales / income from operations is at Rs 12,757 crores, showing a de-growth of 19 per cent over same period last year. India sales is at Rs. 3,982 crores, up by 3 per cent over H1 last year. The US finished dosage sales is at $ 660 million down by 43 per cent over H1 last year. Emerging markets sales is at $ 363 million up by 13 per cent over H1 last year. Rest of World sales is at $ 226 million, showing a growth of 39 per cent over H1 last year. EBITDA is at Rs 2,369 crores, resulting an EBITDA margin of 18.6 per cent.

Net profit for the H1FY18 is at Rs 487 crores, was adversely impacted by settlements with certain plaintiffs related to the Modafinil antitrust litigation in the US, with the settlement amounting to Rs 951 crores reported in Q1FY18. Excluding the Modafinil settlement, the adjusted net profit for H1FY18 was at Rs 1,438 crores, down 66% over H1 last year, with resulting adjusted net profit margin of 11.3%.

Dilip Shanghvi, MD, Sun Pharmaceutical Industries, said, "A challenging US generic pricing environment coupled with continued investments in building our global speciality business has impacted our Q2 performance. We expect our performance to gradually improve in the second half of this year. I would also like to welcome Vivek Chaand Sehgal who has joined us as an independent director as of today. Sehgal is a very successful entrepreneur and is the Chairman of Samvardhana Motherson Group and Motherson Sumi Systems. Under the leadership of Sehgal, Samvardhana Motherson Group has evolved into a $ 9 billion leading full system solutions provider to the global automotive industry, starting with an initial equity capital of $ 17 in 1977. I believe that Sun Pharma will benefit from his experience and guidance."