SUN PHARMACEUTICALS LIMITED
FIRST
QUARTER RESULTS
Highlights
of Q1FY13
consolidated
financials
• Net
sales/Income from operations stands
at Rs. 2658 Cr, a growth of 62% over same quarter last year
• Branded
generic sales in India stands
at Rs. 588 Cr, fell by 8% over Q1 last year. This is on account of significantly higher sales in Q4 FY12. Adjusting for this, growth in sales is 20%
• US
finished dosage sale is
$ 285 million, and grew by 105% (in $
terms) over Q1 last year
• International
formulation sales is
$ 68 million, and grew by 20% (in $ terms) over same quarter last year
• EBITDA stands
at Rs 1217 Cr; grew by 122% over Q1 last year; resulting EBITDA margin is 46%,
compared to 33% in Q1 last year.
• Net profit is Rs. 795 Cr, a growth of 59%; resulting
net margin is 30%.
. Equity stands at Rs. 103.56 Cr. Public
shareholding is
36.28%.
During the quarter, there
has been a refinement in the basis of computing the cost of materials consumed
and changes in inventories. Had this refinement not been carried out, the
profit for the quarter ended June 30, 2012 would have been higher by Rs. 75 Cr.
Dilip Shanghvi, Managing
Director, “Over the years, we have focused on building a consistent,
predictable and profitable business. The
performance this quarter is once again a reflection of this strength. The year has begun well as we have reported
strong underlying growth across all our business segments.”
India Branded Generics –
Building Chronic Therapy Leadership
Sale of branded
prescription formulations in India is at Rs. 588 Cr, down by 8% from Q1 last
year. Lower reported growth this quarter is on account of higher sales in Q4 of
last year. Adjusting for this, growth for
the quarter is at 20% over comparable quarter last year.
Sun Pharma holds 4.6%
market share in the Rs.65,300 Cr pharma market, as per latest AIOCD-AWACS
report. The company continues to be
ranked no. 1 based on share of prescriptions with 6 classes of specialists: psychiatrists,
neurologists, cardiologists, ophthalmologists, orthopedicians, and
gastroenterologists.
9 key products were
launched in the first quarter.
US Formulations:
Strengthening the Foundation of Generic Business
Sales in the US is $ 285
million for the first quarter of FY13, up by 105%, accounting for 57% of total
sales. Sales of Caraco increased by 185%
in Q1FY13 when compared to Q1FY12.
Taro recently posted first
quarter FY13 sales of $ 159 million, up 43% from the corresponding quarter last
year.
Net profit is $ 63
million. R & D expense increased 47%
to $11.5 million.
Taro has shared that it
remains cautious of the increasing competition and consequential erosion of
volume on some of its major products.
This could result in significant challenges in maintaining its current
performance. Owing to this, coupled with
the impact of some non-recurring revenues for Sun Pharma and a depreciating
rupee, consolidated EBITDA and net margins for the quarter may not be
sustainable.
Lipodox sales continued in
the current quarter. Remediation efforts
at the Caraco facility in Detroit are ongoing.
Rest of World
Formulation sales in rest
of the world markets outside of India and US accounted for $ 68 million in
Q1FY13 , registering a growth of 20%. Excluding Taro sales outside US,
underlying sales growth in $ terms for Sun Pharma business in these markets is
45%.
Active Pharmaceutical
Ingredients (API): Strategic
strength
API business continues to
expand and support the strategic vertical integration objective. A cumulative of 228 DMF / CEP applications
have been made, with 162 approved so far.
External sales of API, accounting for a minority of the overall API
produced, reached Rs 200 Cr in Q1FY13 registering a growth of 36% over the same
quarter last year.
Research
Consolidated R&D
expense for Q1 FY13 is Rs. 139 Cr, or 5% of sales.
In the first quarter, ANDA
for 1 product was filed. After counting
these, and adjusting for filings that were dropped, cumulatively ANDAs for 391
products have been filed by Sun Pharma and Taro with the USFDA (as on June 30,
2012). ANDAs for 6 products received approvals
in the first quarter, taking the total number of approvals to 256 (as on June
30, 2012). ANDAs for 135 products now
await USFDA approval, including 17 tentative approvals.
The total number of patent
applications submitted now stands at 638, with 304 patents granted so far.
Business Rationalisation
and Dividend
As a part of the proposed
rationalization effective March 31, 2012
that was cleared by the board, the domestic formulations business will
now operate within a wholly owned subsidiary of the company. This is with a view to enhance focus on the
business and allow for quicker responses to competitive market conditions.
The Board also approved an
interim dividend of Rs.4.25 per Share of Re.1 each for the year ended March 31,
2012 in lieu of the dividend recommended by the Board for the year ended 31st
March, 2012, earlier.
52 week high/low price : 689.90/448.50
CURRENT MP : Rs.681
RESULTS TABLE FOR Q1 FY
13 : CONSOLIDATED
|
Income from operations
|
|||
|
Net sales/income from operations (Net of
excise duty)
|
265814
|
||
|
Other operating income
|
2533
|
||
|
Total income from
operations (net)
|
268347
|
||
|
Expenses
|
|||
|
Cost of materials
consumed
|
49780
|
||
|
Purchases of S I T
|
8974
|
||
|
Changes in inventories of FG, WIP, SIT
|
-8523
|
||
|
Employee benefits
|
35122
|
||
|
Depreciation
|
8014
|
||
|
(Other expenses
|
58776
|
||
|
Total expenses
|
152143
|
||
|
Profit from operations
|
116204
|
||
|
Other income
|
-2722
|
||
|
Finance costs
|
2121
|
||
|
Profit before tax
|
111361
|
||
|
Tax expense
|
19249
|
||
|
Net Profit
|
92112
|
||
|
Minority interest
|
12557
|
||
|
Net Profit after minority interest etc
|
79555
|
||
|
Face Value (in Rs.)
|
1
|
||
|
Paid-up equity
|
10356
|
||
|
Earnings per share (after extraordinary items)
|
|||
|
(a) Basic
|
7.7
|
||
|
(b) Diluted
|
7.7
|
||
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