Sun Pharmaceutical Industries Ltd.'s U.S.-based subsidiary Taro Pharmaceutical Industries Ltd. reported a 8.6 percent rise in net sales for the April-June quarter, according to the company's press release.
Net sales rose to $233.8 million, with slightly decreased volumes. Bank of America Merrill Lynch had estimated net sales at $255 million while Religare pegged the number at $245 million. In the same quarter last year, net sales were negatively impacted by a $14 million provision for price protections.
On a sequential basis however, net sales fell 11.8 percent. Analysts had expected sales to fall sequentially due to market share loss in Ketoconazole, Lidocaine and Mupirocin.
Operating income grew 6.1 percent to $142.6 million compared to the same quarter last year, on account of 23.2 percent rise in research and development expenses, partially offset by lower selling, marketing, general and administrative expenses, the release added.
Net profit grew 6.1 percent to $109.9 million from $103.6 million in the same quarter last year. Net profit for the quarter-ended March stood at $115 million.
The company is increasing investments in research and development with an aim to develop a strong product pipeline, said Kal Sundaram, chief executive officer of Taro Pharma in the earnings release.
Sales from new products are beginning to accelerate, however we continue to experience increased competitive intensity. Delivering strong financial results, developing our pipeline, and the investment under our share repurchase program demonstrates our commitment to increasing long-term shareholder value.Kal Sundaram, CEO, Taro Pharma
Shares of Sun Pharma fell over 2 percent to Rs 800.50 apiece on the Bombay Stock Exchange, after Taro Pharma results.
Sun Pharma will announce its first quarter results on Friday.
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