By Shabana Hussain| May 29, 2015
But its Q4 results are below expectations
The world's fifth-largest and India's largest generic pharma company, Sun Pharmaceutical Industries Ltd, saw its full year revenue increase by 70 percent to Rs 27,286 crore for the fiscal ended March, 31, 2015, and a 41.7 percent rise in net profit to Rs 4,541 crore.
This is Sun Pharma's first annual result after it acquired Ranbaxy Laboratories from Japan's Daiichi Sankyo for $3.2 billion in April 2014. The fourth quarter results have numbers from Ranbaxy Laboratories as well. They were, however, below street expectations. Revenue for the fourth quarter stood at Rs 6,145 crore, a growth of 51 percent over the same quarter last year. Net profit declined by 44 percent to Rs 888 crore during the fourth quarter from Rs 1,587 crore in the same period the previous year.
In a press statement, Sun Pharma said that its Ebitda and net profit for FY15 were adversely impacted by a few items relating to professional charges, harmonisation of policies of erstwhile Ranbaxy with the company, etc. “Post the completion of the merger, we have commenced the integration of Ranbaxy,” said Dilip Shanghvi, managing director, Sun Pharma. “Our performance has been impacted due to various one-time charges, mainly on account of the Ranbaxy merger as well as due to price erosion for some of our products in the US.”
Sun has retained its leadership position in the India branded generics space. Sale of branded prescription formulations in India for the full year FY15 was at Rs 6,717 crore. US formulations sales in the US were at $2,244 million for FY15, accounting for 50 percent of the total sales. A bulk of these sales came from Taro which recently posted full year sales of $863 million, up by 14 percent over the last fiscal. Emerging market sales for FY15 was at $611 million, accounting for 14 percent of the total sales.
Sun's Research & Development spend for FY15 was Rs 1,955 crore at 7.2 percent of sales. A company statement said this spend includes significant investments in funding the clinical development of MK-3222, the psoriasis monoclonal anti-body in-licensed from MSD (US).
The company announced its results after the markets closed on Friday.