Sun Pharma posts Q3FY18 results

Q3 adjusted net profit was at Rs 878 crores

Sun Pharmaceutical Industries has posted third quarter and nine month financial results ending December 31, 2017.
The consolidated financials in Q3FY18 are: Sales/ income from operations was at Rs 6,598 crores, a de-growth of 14 per cent over same quarter last year. The decline is primarily driven by the US business. All other businesses have grown for the quarter. India sales was at Rs 2,085 crores, growth of 6 per cent over Q3 last year. The US finished dosage sales was at $328 million down by 35 per cent over Q3 last year.

The reduction was partly driven by the YoY decline in sales of generic Imatinib and Olmesartan authorised generics. Emerging markets sales was at $189 million up by 10 per cent over Q3 last year. The rest of world sales was at $120 million, growth of 6 per cent over Q3 last year. R&D investments was at Rs 473 crores (7.2 per cent of sales) compared to Rs 613 crores (8 per cent of sales) for Q3FY17. EBITDA was at Rs 1,398 crores, resulting EBITDA margin of 21.2 per cent. Adjusted net profit for the quarter was at Rs 878 crores while reported net profit was at Rs. 365 crore. Reported net profit was adversely impacted by one-time deferred tax adjustment of Rs. 513 crores related to changes in US tax rates.

In nine-months FY18, sales/ income from operations was at Rs 19,355 crores, de-growth of 17 per cent over same period last year. India sales was at Rs 6,067 crores, up by 4 per cent over nine-onth period last year. The US finished dosage sales was at $988 million down 41 per cent over nine months last year. The US sales for nine-month period last year included benefits of the 180-day exclusivity for generic Imatinib and Olmesartan authorised generics. Emerging markets sales was at $552 million up by 12 per cent over nine-month last year. The rest of world sales at $346 million, growth of 25 per cent over nine-month last year. EBITDA was at Rs 3,767 crores, resulting EBITDA margin of 19.5 per cent.

Net profit was at Rs 853 crores, was adversely impacted by a one-time deferred tax adjustment of Rs 513 crores related to changes in the US tax rates and settlements with certain plaintiffs related to the Modafinil antitrust litigation in the US, with the settlement amounting to Rs 951 crores reported in Q1FY18. Excluding both these one-time impact, the adjusted net profit for 9m FY18 was at Rs. 2,316 crores.

Dilip Shanghvi, MD, Sun Pharma said, “Our Q3 performance reflects a gradual improvement in profitability over the first half of this year, despite a challenging US generic pricing environment. During the quarter, we took another step forward in enhancing our speciality business by reporting acceptance of NDA filing for OTX-101 by the US FDA. We will continue to evaluate opportunities in the speciality segment to further enhance this business.”