Sun Pharmaceutical Industries Ltd.'s quarterly profit rose on the back of lower operating expenses and higher other income.
Net profit rose 70% year-on-year to Rs 1,813 crore in the three months ended September, India's largest drugmaker said in an exchange filing. That compares with the Rs 1,124-crore consensus estimate of analysts tracked by Bloomberg. The company had reported a net loss of Rs 1,656 crore in the preceding quarter.
Other expenses declined 3% to Rs 2,392 crore and other income rose by 28% to Rs 256 crore, aiding profitability.
Revenue rose 5% over a year earlier to Rs 8,553 crore, compared with the estimated Rs 8,302 crore. That's also a 13% rise over the April-June quarter.
Sun Pharma's operating profit rose 30% to Rs 2,310 crore, against the Rs 1,861-crore forecast.
Margin improved to 27% over the year earlier 22%.
Sales and gross profit of Taro Pharmaceutical Industries Ltd., its U.S. subsidiary, dropped 25.7% and 16.3% year-on-year to $142.8 million and $81.6 million, respectively, in the quarter ended September, according to a separate statement. The earnings and sales of Taro, however, improved over the preceding three months.
The U.S. business accounts for more than 30% of Sun Pharma's overall consolidated sales. Taro Pharma contributes nearly half of the parent's total U.S. formulation sales
Other Highlights
Revenue from India business grew 1% to Rs 2,531 crore.
U.S.-finished dosage sales remained flat compared with a year earlier at $335 million; grew 19% compared with Q1FY21.
Emerging market sales rose 4.5% to $210 million.
Rest of the world sales at $178 million, up 10%.
API business grew 9% to Rs 510 crore
Shares of Sun Pharma rose 4%, the highest in at least five days, after the results were announced compared with a 1% gain in the Nifty 50 Index.
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