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Sun Pharma Q4 Jumps 57%, Cipla Net Drops 3%

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Sun Pharmaceutical Industries Ltd, India's third-largest drugmaker by revenue, on Thursday (29 May) reported a 57 per cent jump in fourth-quarter net profit, slightly above expectations, helped by higher sales in the United States, its largest market.

The company, which is in the process of acquiring loss-making rival Ranbaxy Laboratories Ltd, posted a net profit of Rs 1587 crore ($269.55 million) in January-March, compared with Rs 1,012 crore a year earlier. Analysts on average expected Rs 1574 crore, according to Thomson Reuters data.

Sales in January-March rose 32 per cent to Rs 4044 crore. The company also said it expects a 13 to 15 per cent growth in sales in full-year 2015.

Sun Pharma, a bellwether in India's $15-billion pharmaceutical industry, agreed in April to buy Ranbaxy from Japan's Daiichi Sankyo Ltd for $3.2 billion, creating the world's fifth-largest maker of generic drugs.

The drugmaker, however, faces an uphill task in turning around Ranbaxy's business and fixing manufacturing quality issues that have resulted in several Ranbaxy plants being barred from exporting to the United States.

Sun Pharma is also working towards resolving quality control issues that got its Karkhadi, India, plant banned by the US Food and Drug Administration in March.

The company's shares, which are up 4 percent so far this year, ended 0.43 per cent higher, while the Nifty was down 1.3 per cent.

Cipla Q4 Net Profit AT Rs 261 Crore
Drugmaker Cipla Ltd reported a 3 percent drop in fourth-quarter net profit, slightly below analysts' estimates due to higher raw material and employee expenses.

The company, among the world's largest suppliers of HIV/AIDS medicines, said January-March net profit was Rs 261 crore ($44.33 million), compared with Rs 268 crore a year earlier. Analysts on average expected Rs 276 crore, according to Thomson Reuters data.

Net sales rose about 15 per cent to Rs 2194 crore, while total expenses shot up 35 per cent.

Cipla, one of the largest pharmaceutical companies in India, gets more than half its revenue through exports to nearly 180 overseas markets, including Africa, Latin America and the United States.

Shares of the company, down 6.4 per cent so far this year, closed down 2 per cent on Thursday, in line with the Nifty.

(Agencies)
 


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