Sun Pharmaceutical Industries has reported higher quarterly profit and sales compared with the same quarter previous year, driven by double-digit growth in sales of its formulations in the US and branded generics in India.
The company reported a profit of Rs 1,572 crore, a 15% year-on-year (YoY) jump while sales registered growth of 13% to Rs 4,751 crore. Analysts expected a profit of Rs 1,594.4 crore on sales of Rs 4,623.2 crore.
“Our Q2 performance was strong and continued to achieve high level of profitable growth, in line with our expectations. We remain focused on strengthening our existing businesses and developing a differentiated and specialty product basket as well as planning for the Ranbaxy integration,” Dilip Shanghvi, Managing Director, Sun Pharma, said in a statement.
The company’s branded prescription formulations brought in Rs 1,152 crore for Q2FY15 while US formulations earned Rs 2,911.79 crore for the same quarter.
Sun Pharma announced on April 7 that it will acquire Gurgaon-based Ranbaxy for $4 billion, which would catapult the merged entity to the top of the league with a domestic market share of 9.43%.
Sun Pharma’s US subsidiary, Taro Pharmaceutical Industries, reported its results for the quarter ended September 30 late last week. Its Q2FY15 sales had risen 22% to $251 million while net profit had nearly doubled to $143 million.
The company’s active pharmaceutical ingredient (API) sales were relatively flat compared with the same quarter last year.
“We increased the API supply for captive consumption significantly for key products which enabled us to enjoy the benefits of strategic vertical integration. As a result, for Q2FY15, external sales of API was flat at Rs 210 crores over Q2 last year,” Sun Pharma said in a statement.
The company spent Rs 312 crore, or 6.6% of net sales, on research and development activities. It now has 354 generic drug approvals in the US while 130 applications await approval from the US Food and Drug Administration, including 11 tentative approvals.
Sun Pharma shares closed up 0.3%, at Rs 908.60, on Thursday on the Bombay Stock Exchange.