Sun Pharma FY20 results: Profit rises 41% to Rs 3,765 crore, sales up 13%

For the fourth quarter ended March 31, 2020 (Q4 FY20), Sun Pharma posted a 37 per cent YoY decline in consolidated profit at Rs 399.8 crore due to one-time loss of Rs 260.6 crore

Pharma major Sun Pharmaceutical Industries on Wednesday reported 41.25 per cent year-on-year (YoY) growth in consolidated net profit at Rs 3,764.93 crore for the full financial year ended March 31, 2020. The Mumbai-headquartered firm had reported a net profit of Rs 2,665.42 crore in FY19, the drug maker said in a filing to the Bombay Stock Exchange.

The drug maker's revenue from operations grew by 13 per cent to Rs 32,325 crore as compared to Rs 28,686 crore in the corresponding quarter.

For the fourth quarter ended March 31, 2020 (Q4 FY20), Sun Pharma posted a 37 per cent YoY decline in consolidated profit at Rs 399.8 crore due to one-time loss of Rs 260.6 crore. Consolidated revenue, however, increased by 14.3 per cent YoY to Rs 8,184.9 crore.

Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 34 percent to Rs 1,363 crore and margin expanded by 250 basis points to 16.7 per cent.

For full year FY20, India sales, which accounted for 30 per cent of total revenue, stood at 9,710 crore. "Adjusted for the one-time impact of approximately Rs 1,085 crore related to the change in distribution for India business in Q4 last year, the India business has recorded a YoY growth of 8 per cent for Q4 and 15 per cent for full year FY20," Sun Pharma said in the exchange filing.

Sales in the US were at $1,487 million recording a marginal decline of 2 per cent over same period last year. For FY20, sales in emerging markets were at $776 million, up by 1 per cent over same period last year.

Formulation sales in Rest of World (ROW) markets excluding US and Emerging Markets were $638 million, up by 29 per cent over year ago period.

Commenting on earnings, Dilip Shanghvi, Managing Director of the company said, "In terms of business performance, we have done well and have started gaining market share in India. Our global specialty business has also gained reasonable traction with Ilumya recording approximately US$ 94 million sales globally in the first full year of commercialisation. Our endeavor will be to gain market share in each of our businesses by doing better, despite the near term uncertainties related to COVID-19."

On COVID-19, the company said that the pandemic has resulted in most countries imposing lockdowns on almost all economic activity, temporary bans on travel and transportation, restrictions on people-to-people physical contact and closure of business operations for most of the industries. The pharmaceutical sector, being a supplier of essential items, has been relatively better-off compared to most other industries.

"Despite our proactive COVID risk response initiative, we do estimate some softening of sales in the near term due to the lockdown and stocking up by customers, although it is difficult to quantify the impact as of now. Our endeavour will be to ensure that we are least impacted," the drug maker said.

Sun Pharma's board has recommended payment of final dividend of Rs 1 per equity share of Rs 1 each for the year ended March 31, 2020, subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company. The dividend is expected to be paid during the month of September, 2020.

Sun Pharma's subsidiary Taro Pharmaceuticals reported a 7.2 per cent decline in profit at $54.2 million for the March quarter of 2020 compared to March quarter 2019. Net sales also dropped during the quarter by $5 million to $174.9 million YoY.

Ahead of Q4 earnings, shares of Sun Pharmaceutical Industries closed Wednesday's trade at Rs 450.55 apiece, down 1.85 per cent, against previous close level of Rs 459.05 on the BSE.