Sun Pharmaceutical Industries Ltd.'s quarterly profit jumped twofold as a surge in other income offset the drop in sales at the U.S. subsidiary.
Net profit of India's largest drugmaker rose to Rs 1,852.5 crore in the quarter ended December from Rs 913.5 crore a year ago, according to an exchange filing. That compares with the Rs 1,379.4-crore consensus estimate of analysts tracked by Bloomberg.
Other income stood at Rs 315 crore during the reported period compared with Rs 120 crore a year earlier.
Other highlights (year-on-year)
- Revenue rose 8% to Rs 8,836.7 crore, against the analysts' forecast of Rs 8,775.3 crore.
- Operating profit rose 31% to Rs 2,406 crore, compared with the projected Rs 2,190.4 crore.
- Margins expanded to 27.2% from 22.6%.
Sales at Taro Pharmaceutical Industries—Sun Pharma's U.S. subsidiary—fell 5% year-on-year to $140.1 million.
- Its gross profit fell 22% year-on-year to $73.2 million, and comprised nearly 52.2% of the net sales in the quarter ended December against 63.7% in the year-ago period.
- Taro's operating income fell 38% year-on-year to $36.3 million, and accounted for 25.9% of net sales compared with 39.4% a year ago.
The third-quarter performance reflects continued profitable growth in a market gradually recovering from the impact of the pandemic, Dilip Shangvi, managing director at Sun Pharma, said in the filing. “Most of our businesses have done well over Q3 last year. Our global specialty sales have continued to show an improving trend and have crossed pre-Covid levels,” he said. “Global Ilumya (for moderate-to-severe plaque psoriasis) sales for nine months ended December 2020 have already crossed last full year's sales.”
- Sun Pharma's sales from the India business rose 9.4% year-on-year to Rs 2,753 crore.
- The U.S. finished dosage sales rose 7% over the year-earlier to $374 million. The U.S. business accounted for 31% of its consolidated sales.
- Emerging market sales rose 4.7% year-on-year to $204 million.
- Rest of the world sales rose 11.7% to $173 million.
