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Sun Pharma reports a Rs 2,277 crore loss in the March quarter

-By ArdorComm News Network

Sun Pharma reported a surprising loss of Rs 2,277 crore in the March quarter, owing to one-time charges related to settlement costs and operations restructuring in some countries. In the previous fiscal year, the pharma had a net profit of Rs 894 crore.

The Rs 3,936 crore one-time exceptional charge is mostly due to a $485 million (about Rs 3,761 crore) antitrust settlement on three Ranbaxy drugs — Valganciclovir, Valsartan, and Esomeprazole — announced on March 23. A one-time expense of Rs 56 crore is also included in the item, which is related to restructuring operations in several regions.

After deducting exceptional items (Rs 3,936 crore) and exceptional tax gain of Rs 76 crore, the company’s adjusted net profit for the quarter was Rs 1,582 crore, up 18 percent over the previous quarter. The company’s revenue increased 11% year over year to Rs 9,386 crore, with India formulation sales jumping 16 percent to Rs 3,095 crore. Revenue from formulations in the United States reached $389 million (about Rs 3,016 crore), up 5% from the previous year.

“FY22 was a good year with strong top line and ebitda (earnings before interest, taxes, depreciation, and amortisation) growth,” Sun Pharma MD Dilip Shanghvi said. Despite increased prices, all of our geographies have had double-digit growth, and profitability has improved. The specialty business is continuing to grow rapidly, with global Ilumya sales increasing by 81 percent to $315 million in FY22. Our India business continues to outperform the market, resulting in a larger market share. We’re still concentrating on building our global speciality business, as well as all of our other businesses and improving operational efficiencies.”

For the first time, the company exceeded $5 billion in sales for the entire year, with an adjusted net profit of $1 billion. For the whole year, consolidated sales from operations totaled Rs 38,426 crore, up 15.6 percent from the same period last year. Adjusted net profit for FY22 was Rs 7,667 crore, up nearly 29% year-on-year, excluding exceptional items. The reported net profit for FY22 was Rs 3,273 crore, up from Rs 2,904 crore the previous year, a 13 percent increase.

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