India’s largest drugmaker by sales Sun Pharmaceutical on Tuesday disappointed the Street, with its consolidated net profit plunging 60.23% on y-o-y basis to Rs 479 crore during April-June due to one-time exceptional charges of Rs 685.17 crore related to write-downs and integration of Ranbaxy. “Our performance for the quarter has been impacted by certain one-time and exceptional charges which will drive synergies and overall profitability improvement in the long-term,” said Dilip Shanghvi, MD.
Ebitda stood at Rs 1,614 crore in Q. “EBITDA includes certain one-time charges related to restructuring and other write-offs. Excluding these one-time items, the adjusted Ebitda margin was at 28% compared to 30.2% for Q1 last year,” Sun Pharma said. Revenue was in line with expectations, up 6.7% on yearly basis to Rs 6,767.6 crore in the June quarter.
While branded generic drug sales in the Indian market rose 11% from the year ago period to Rs 1,784 crore, US drug sales fell 4% to $488 million on y-o-y basis. There was a 15% y-o-y decline in sales in emerging markets and it stood at $133 million. Other operating income reported for the quarter included proceeds from brand divestments pertaining to the acquisition of Ranbaxy.
R&D investments surged 37% over the same period last year to Rs 511 crore. “We continue to invest significantly in R&D and in building critical talent for enhancing our specialty and complex generics pipeline. As part of this initiative, we have strengthened our ophthalmology and OTC teams in the US as well as formed a dedicated team for MK-3222, our IL-23 anti-body which is undergoing Phase-III trials,” Shanghvi added.