SPARC Q3 net loss widens to Rs-67.6cr on higher product development costs

SPARC reported 11.33% rise in total sales revenues for the Dec-20 quarter on consolidated basis at Rs21.82cr

Feb 09, 2021 11:02 IST India Infoline News Service

Sun Pharma Advanced Research Company
SPARC reported 11.33% rise in total sales revenues for the Dec-20 quarter on consolidated basis at Rs21.82cr. The research arm of Sun Pharma has been deep losses for some time as its total revenues have been insufficient to cover the cost of high manpower costs and the costs of development and clinical trial expenses. That cost has been growing sharply over the last few quarters.


While the clinical trial costs and development costs contributed to the widening of the losses in the Dec-20 quarter, there was also a spurt in the license fees paid as well as the interest costs for the company. At present, the company has a negative net worth due to consistent losses and also has negative working capital where current liabilities exceed the current assets. The company has an undertaking from its parent, Sun Pharma, to support the venture till it is able to stand on its own.


Financial highlights for Dec-20 compared yoy and sequentially


SPARC Ltd
Rs in Crore Dec-20 Dec-19 YOY Sep-20 QOQ
Total Income (Rs cr) ₹ 21.82 ₹ 19.60 11.33% ₹ 17.64 23.70%
Net Profit (Rs cr) ₹ -67.62 ₹ -55.51 21.82% ₹ -83.49 -19.01%
Diluted EPS (Rs) ₹ -2.58 ₹ -2.12 ₹ -3.19
Net Margins -309.90% -283.21% -473.30%
 

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