Sun Pharma Reports 60% Decline for Q1 of FY15
Published By : 12 Aug 2015 | Published By : QYRESEARCH
Sun Pharmaceuticals posted a decline in its consolidated net profit by around 60% for the Q1 of the fiscal year 2015-16, ended on June 31st. For the first quarter in 2014, the company recorded a net profit of Rs. 1,204 crore, whereas, this year, the net profit for the first quarter reported by the company is Rs.479 crore. However, the revenue reported by the company is 5% up from the revenue posted in Q1 in 2014, i.e., the revenue posted by Sun Pharma for Q1, 2015 is 6,863 crore against Rs.6,523 crore in Q1, 2014.
In the previous month, the giant drug maker has stated that it expect a negative impact on its profitability in the FY16, on account of the huge expenses associated with the acquisition of Ranbaxy and the remedial action at units under the U.S. FDA scanner.
The company reported a sharp rise in the other operating income from Rs. 28 crore to Rs. 235 crore. The growth in other operating income was driven by the proceedings of brand divestments, which was mandated by various competitive authorities relating to the Ranbaxy acquisition. Sun pharma had procured Ranbaxy for US$4 billion from Daiichi Sankyo. The earnings of the company before depreciation, taxes, interest, and amortization was valued at 24.7%.
For the first quarter of FY16, Ebitda includes various one-time charges associated with restructuring and other write-offs. The adjusted margin for Ebitda was reported at 28% in comparison to 30.2% for the Q1 of 2014.
Mr. Dilip Shanghvi, the managing director of Sun Pharma, stated that the performance of the pharmaceutical company for this quarter has been affected by several exceptional and one-time charges that are expected to drive overall profitability in the long run.