Sun Pharma also said that its board has decided to evaluate a proposal for buyback of equity shares and will hold a meeting on June 23 for the purpose.
Drug major Sun Pharmaceutical Industries is looking at up to 10 per cent increase in its consolidated revenues in the current financial year with an expectation of all round growth of business.
The company also said that its board has decided to evaluate a proposal for buyback of equity shares and will hold a meeting on June 23 for the purpose.
Addressing a conference call, Sun Pharmaceutical Industries Managing Director Dilip Shanghvi said the company expects “consolidated revenues to grow by 8 to 10 per cent in FY 17”.
The growth is expected on account of traction in all parts of business, he added.
Shanghvi had stated in the company’s earnings release that Sun Pharma has also made investments in building the specialty business in the US.
“These strategic investments will help us drive the sustainable growth of our business,” he had said.
Commenting on the issues faced by the company with the USFDA over its Halol plant, he said the process of remediation regarding it is continuing and before the end of the quarter the company will ask FDA to inspect the facility.
Last year in December, The USFDA had issued a warning letter to the company over “significant violations of current good manufacturing practice (CGMP) regulations for finished pharmaceuticals” at the Halol plant.
Inspectors of the health regulator had found major norm violations such as factory ceilings which leaked and the company failing to follow written procedures designed to prevent microbiological contamination of drugs, among others.
On the continuing focus by the company on research and development, Shanghvi said Sun Pharma will continue to spend around 9 per cent of sales on R&D.
Sun Pharma posted a consolidated net profit of Rs 1,713.69 crore for the quarter ended March 31, this year. The company had posted a net profit of Rs 889.24 crore for the corresponding period of the previous fiscal.
Consolidated total income from operations of the company was at Rs 7,634.16 crore during the quarter under consideration. It was Rs 6,112.39 crore in the same period, a year ago.
Shares of Sun Pharmaceutical Industries were today trading at Rs 764.05 per scrip on BSE, down 5.96 per cent from its previous close.