Sun Pharmaceutical Industries Ltd., an integrated, specialty pharmaceutical company in India, reported lower consolidated net profit for the fourth-quarter, hurt by poor revenue from international formulation business. Consolidated Results
The Vadodara, Gujarat-based company reported posted fourth-quarter consolidated net profit of Rs.394.88 crore or Rs.19.10 per share, 45% lower than Rs.722.81 crore or Rs.34.90 per share in the corresponding quarter last year.
The company's quarterly net revenue fell 10% to Rs.1,134.41 crore from Rs.1,257.17 crore in the fourth-quarter of last year, while other income amounted to Rs.28.74 crore, compared with Rs.24.57 crore in the previous year quarter.
In domestic market, revenue from Formulations segment increased 81% to Rs.652.58 crore from Rs.361.54 crore in the year-ago quarter, while that of Bulk segment amounted to Rs.21.16 crore, down 3% from Rs.21.76 crore in the fourth-quarter of 2008. Revenue from others was Rs.0.27 crore, compared with Rs.0.05 crore for the same period last year.
In international market, revenue from Formulations segment plummeted 57% to Rs.351.95 crore from Rs.824.11 crore in the year-ago quarter, while that of Bulk segment totaled Rs.130.49 crore, up 85% from Rs.70.53 crore in the previous year quarter. Revenue from others was Rs.0.02 crore, compared with Rs.1.78 crore for the same period last year.
Sun Pharma said its subsidiary, Caraco Pharmaceutical Industries Ltd's, sales for the quarter were lower by 67%, compared to last year, largely on account of a very high base in the corresponding quarter last year, contributed by launch of pantoprazole generic.
Research and development expenses during the quarter were Rs.74.80 crore, representing 7% of net sales, the company said.
For the fiscal year, the company posted consolidated net profit of Rs.1,817.73 crore, up 22% from Rs.1,486.90 crore a year-ago. Net revenue for the full year grew 27% to Rs.4,272.30 crore from Rs.3,356.53 crore last year, while other income plunged totaled Rs.86.84 crore, compared with Rs.30.44 crores in FY08.
Standalone Results
Sun Pharma's fiscal year standalone net profit was Rs.1,265.29 crore or Rs.61.10 per share, up 25% from Rs.1,014.04 crore or Rs.49.00 per share in 2008.
Net revenue for the full year grew 23% to Rs.3,861.55 crore from Rs.3,149.05 crore a year-ago, while other income amounted to Rs.66.51 crore, compared with Rs.20.89 crore in FY08.
The company said its board has recommended a dividend of Rs.13.75 per equity share of Rs.5 each for the fiscal year 2009.
During the year, the company has filed 37 ANDAs, compared to a guidance of 30. With this, the company is awaiting approval from US FDA for 108 products, including 7 tentative approvals. The total number of patents applications submitted for Sun Pharma now sands at 233 with 76 patents granted. A cumulative of 129 DMF/CEP applications made with 71 approved.
On acquisition of Israeli drug-maker Taro, Sun Pharma said the mediation talks, initiated on the recommendation of the Supreme Court of Israel between the company, Taro, Templeton and Levitt/Moros families, ended inconclusively. Accordingly, an update has been communicated to the Israeli apex court.
Sun Pharma has commenced the litigation in Tel Aviv District Court on May 14, 2009, requesting the court to order Taro and its Directors to publish Taro's audited financial statement for the years 2006 and 2007.
Dilip Shanghvi, Chairman and Managing Director, said, "Performance in the fourth-quarter in the US has been below expectations, partly on account of product recalls initiated by Caraco, though the recurring business growth remains encouraging. While we continue to receive product approvals for US from all our other facilities, we remain focused on resolution of all regulatory issues at Detroit facility, though it is clearly taking longer than originally anticipated. Rest of the business continues to perform in line with out expectation as visible through these sets of numbers. Our commitment to a healthy bottom-line and to building a solid business with consistent revenues derived across geographies remains unchanged."
At the BSE, Sun Pharma closed Monday's trading at Rs.1,218.50, up by Rs.8.80 or 0.73% on a volume of 1.23 lakh shares. The stock hit an intraday high of Rs.1,260.00 and a low of Rs.1,210.00.
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