Meanwhile, the BSE Sensex was down 14.19 points, or 0.08%, to 17,546.68
On BSE, 2.58 lakh shares were traded in the counter as against an average daily volume of 49,464 shares in the past one quarter.
The stock hit a record high of Rs 690 in intraday trade today, 10 August 2012. The stock hit a low of Rs 670.50 so far during the day. The stock had hit a 52-week low of Rs 448.20 on 4 October 2011.
Sun Pharmaceutical Industries shares had witnessed pre-result rally. The stock had jumped 11.29% to settle at Rs 676.95 on Thursday, 9 August 2012, from a recent low of Rs 608.25 on 24 July 2012. The stock had outperformed the market over the past one month until 9 August 2012, rising 8.27% compared with the Sensex's 0.97% rise. The scrip had also outperformed the market in past one quarter, advancing 12.86% as against 6.56% rise in the Sensex.
he large-cap drug maker has an equity capital of Rs 103.56 crore. Face value per share is Re 1.
During trading hours today, 10 August 2012, Sun Pharmaceutical Industries said its consolidated net profit jumped 58.79% to Rs 795.55 crore on 62.5% growth in net sales to Rs 2658.14 crore in Q1 June 2012 over Q1 June 2011.
In a press release, the company said branded generic sales in India fell 8% to Rs 588 crore in Q1 June 2012 over Q1 June 2011 on account of significantly higher sales in Q4 March 2012. Adjusting for this, growth in sales is 20% in Q1 June 2012 over Q1 June 2011. Q1 June 2012 net margin was 30% and nine key products were launched in Q1 June 2012, the company said.
During Q1 June 2012, there has been a refinement in the basis of computing the cost of materials consumed and changes in inventories. Had this refinement not been carried out, the profit for Q1 June 2012 would have been higher by Rs 75 crore, the company said.
The company further infirmed that Active Pharmaceuticals Ingredient (API) business continues to expand and support the strategic vertical integration objective. A cumulative of 228 DMF / CEP applications have been made, with 162 approved so far. External sales of API, accounting for a minority of the overall API produced, reached Rs 200 crore in Q1 June 2012 registering a growth of 36% over the same quarter last year.
Consolidated Research & Development expense was Rs 139 crore in Q1 June 2012, or 5% of sales. In the first quarter, ANDA for 1 product was filed. After counting these, and adjusting for filings that were dropped, cumulatively ANDAs for 391 products have been filed by Sun Pharma and Taro with the USFDA (as on 30 June 2012). ANDAs for 6 products received approvals in the first quarter, taking the total number of approvals to 256 (as on June 30, 2012). ANDAs for 135 products now await USFDA approval, including 17 tentative approvals. The total number of patent applications submitted now stands at 638, with 304 patents granted so far.
US finished dosage sale grew by 105% (in $ terms) to $285 million in Q1 June 2012 over Q1 June 2011. International formulation sales grew by 20% (in $ terms) to $68 million. Excluding Taro sales outside US, underlying sales growth in $ terms for Sun Pharma business in these markets is 45%. EBITDA grew by 122% to Rs 1217 crore in Q1 June 2012 over Q1 June 2011 resulting in EBITDA margin of 46% in Q1 June 2012 compared to 33% in Q1 June 2011.
Sales of Caraco increased by 185% in Q1 June 2012 over Q1 June 2011. Taro recently posted 43% rise in sales to $ 159 million in Q1 June 2012 over Q1 June 2011. Net profit was $63 million. Research & development expense increased 47% to $11.5 million in Q1 June 2012 over Q1 June 2011.
Sun Pharmaceuticals Industries informed that Taro has shared that it remains cautious of the increasing competition and consequential erosion of volume on some of its major products. This could result in significant challenges in maintaining its current performance. Owing to this, coupled with the impact of some non-recurring revenues for Sun Pharma and a depreciating rupee, consolidated EBITDA and net margins for the quarter may not be sustainable.
Lipodox sales continued in the current quarter. Remediation efforts at the Caraco facility in Detroit are ongoing.
Sun Pharma holds 4.6% market share in the Rs 65300 crore pharma market, as per latest AIOCD-AWACS report. The company continues to be ranked no 1 based on share of prescriptions with 6 classes of specialists: psychiatrists, neurologists, cardiologists, ophthalmologists, orthopedicians, and gastroenterologists.
As a part of the proposed rationalization effective 31 March 2012 that was cleared by the board, the domestic formulations business will now operate within a wholly owned subsidiary of the company. This is with a view to enhance focus on the business and allow for quicker responses to competitive market conditions.
The board's approval was also sought for the likely delay in presenting the accounts of 2011-12 to shareholders after this rationalisation. This is required in order to redraw accounts, and allow for audit of these revised accounts for the year ended 31 March 2012, Sun Pharmaceutical Industries said.
The board approved an interim dividend of Rs 4.25 per share for the year ended 31 March 2012 in view of the likely delay for the redrawing and audit of the revised accounts for the year ended 31 March 2012 and adoption of accounts by the members so as to give effect to the proposed rationalisation of the business of the Company with effect from 31 March 2012. The company said 16 August 2012, has been confirmed as the record date for the payment of such interim dividend. This interim dividend would be paid on or after 22 August 2012.
Dilip Shanghvi, Managing Director of Sun Pharmaceutical Industries said, “Over the years, we have focused on building a consistent, predictable and profitable business. The performance this quarter is once again a reflection of this strength. The year has begun well as we have reported strong underlying growth across all our business segments.”
Sun Pharmaceutical Industries is an international, integrated, speciality pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India, US and several other markets across the world. In India, the company is a leader in niche therapy areas of psychiatry, neurology, cardiology, diabetology, gastroenterology, orthopedics and ophthalmology. The company has strong skills in product development, process chemistry, and manufacturing of complex API, as well as dosage forms.
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