Sun Pharma's Q1 PAT drops to Rs1,656cr on lower sales except for India biz; Taro logs net loss of $434.9M

Consolidated sales were at Rs7,467.19cr down from Rs8,259.30cr a year ago same period.

Jul 31, 2020 04:07 IST India Infoline News Service

Sun Pharma
Sun Pharmaceuticals on Friday witnessed a consolidated net loss of Rs1,655.60cr during the June 2020 (Q1FY21) quarter ending period, compared to a profit of Rs1,387.48cr in the corresponding period of the previous year. Consolidated sales were at Rs7,467.19cr down from Rs8,259.30cr a year ago same period.

Key highlights of the Q1 result as per the filing are:
  • India sales at Rs. 2,388 crores, growth of 3.2% over Q1 last year.
  • US finished dosage sales at $282M, down by 33.5% over Q1 last year. Sales for Q1 last year included a one-time contribution from the special business in the US and hence the numbers are not strictly comparable.
  • Emerging Markets sales at $173M, a decline of 10.5% over Q1 last year.
  • Rest of World sales at $136M, down by 18.5% over Q1 last year.
  • R&D investments at Rs421cr (5.6% of sales) compared to Rs422cr (5.1% of sales) for Q1FY20.
  • EBITDA at Rs1,725cr, with a resulting EBITDA margin of 23.1%.
  • Excluding the exceptional items of Rs. 3,633 crores (and its minority interest of Rs. 832 crores), adjusted net profit for Q1FY21 was at Rs. 1,146 crores with resulting net profit margin at 15.3%. Reported net loss for the quarter was at Rs. 1,656 crores due to the exceptional items mentioned above.
Dilip Shanghvi, Managing Director of the Company said, “The Q1 performance reflects the impact of the global COVID-19 pandemic and consequent lockdown across markets and is not an indicator of the underlying strength of our business. Despite challenging conditions, we have done well and have not lost market share for any of our key specialty products in the US. We have also maintained our market share in the Indian domestic market. Our timely risk mitigation initiatives ensured smooth operations of our manufacturing network, thereby maintaining continuous supplies of drugs. In the meantime, we continue to focus on serving our patients and customers, ensuring safety of our employees and business continuity.”

In the quarter, Taro posted sales of $117.6M, down 27% over Q1 last year. Excluding the one-time settlement charge of $478.9M, net profit was $29M compared to $66.2M in Q1FY20. Taro’s reported net loss for Q1 was $434.9M.

On Sensex, Sun Pharma stock was performing at Rs531.75 per piece higher by 4.27%. 

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