Sun Pharma profit dips 17% on lower sales in US market

Written by fe Bureau | Mumbai | Updated: Jan 30 2010, 08:23am hrs
Sun Pharma has posted a decline of 17% in its consolidated net profit at Rs 338.9 crore for the third quarter of 2009 against Rs 408.6 crore for the third quarter of 2008 on lower sales in the US generics market. Total income has increased 11% from Rs 927.7 crore for quarter ending December 2008 to Rs 1,030 crore in the same period last year. Its shares went up by 1.58% to close at Rs 1,469.45 on the BSE (Bombay Stock Exchange) due to better-than-expected growth in sales revenue on Friday. According to an earlier Motilal Oswal report, Sun Pharmas topline was expected to grow by only 5% due to absence of exclusivity-based Pantoprazole supplies and the impact of the US FDA issues on Caraco. Profit after tax was likely to decrease by 12% due to absence of one-off upsides of Pantoprazole. The companys India-branded generic sales recorded a growth of 24% at Rs 533 crore while sales of the US subsidiary, Caraco were down by 6.7% at $52 million.

Higher global sales push up Lupins profit

Mumbai-based pharma major Lupin Ltds net sales grew 31% to Rs 1,255.4 crore for the third quarter from Rs 961.8 crore in the corresponding period of the previous year. Net profits for Q3 FY 2009-10 was up 38% to Rs 160.6 crore as compared to Rs 116.5 crore in the corresponding period of the previous year. Markets reacted positively to Lupins better-than-expected result. On the BSE, the shares went up as much as 4.5% and traded at Rs 1,472 on Friday. According to reports by various broking firms, Lupins top-line was expected to grow at about 21-26% while net profit at 33-40% for the quarter ended December 31, 2209. EBITDA grew by 49% to Rs 262 crore from Rs 176 crore for the quarter ended December 31, 2008. Margins improved to 21% from 18%. Advanced markets formulation sales (including US, Europe & Japan) increased 35 % to Rs 642.6 crore from Rs 475.4 crore. It contributed 51% of the net sales for the quarter. Formulation sales in US and EU grew 44 % to Rs 493.7 crore, from Rs 343.6 crore.

Glenmark topline beats Street; profit disappoints

Mumbai-based pharma major Glenmark Ltd has reported a 10% growth in sales revenue at Rs 641.6 crore for the third quarter ended December 31, 2009, against Rs 581.38 crore for the corresponding period of previous year. Net profit for the third quarter was up 16% to Rs 94 crore as compared to Rs 81 crore. On BSE, the shares went down by 0.55 % to close at Rs 242.15 on Friday. Though the topline was in line with the analysts expectation, PAT is reported at below expectations. As per a Motilal Oswal report, PAT was likely to grow by 44% y-o-y, mainly led by lower tax outgo. Revenue from generics business was at Rs 280 crore, as against Rs. 278.2 crore, a growth of 1 %. Glenmark Generics Inc, USA, registered revenue of Rs 188.6 crore against revenue of Rs 210 crore, a decline of 10% over the corresponding quarter of the previous year. Glenmark Europes operations registered revenue of Rs 35 crore as compared to Rs 19.2 crore for the previous corresponding quarter, an increase of 82%.