Sun Pharma Reports Q4 and FY18 Results

Sun Pharmaceutical Industries Ltd. reported financials for the fourth quarter & full year ending March 31st, 2018. Highlights of Q4FY18 consolidated financials

• Sales/Income from operations at ₹6711 crores, de-growth of 2 percent over same quarter last year. The decline is primarily driven by the US and the API businesses. All other businesses have recorded positive growth for the quarter.
• India sales at ₹1963 crores, growth of 2 percent over Q4 last year.
• US finished dosage sales at USD 368 million down by 3 percent over Q4 last year.
• Emerging Markets sales at USD 199 million up by 10 percent over Q4 last year.
• Rest of World sales at USD 116 million, growth of 6 percent over Q4 last year.
• R&D investments at ₹743 crores (11 percent of sales) compared to ₹600 crores (9 percent of sales) for Q4FY17.
• EBITDA at ₹1417 crores, resulting EBITDA margin of 21.1 percent.
• Other operating income for the quarter at ₹266 crores which includes USD 20 million of milestone payment from Almirall S.A (Spain) as part of the licensing agreement for the development and commercialization of Tildrakizumab for psoriasis in Europe.
• Net profit for the quarter at ₹1309 crores, resulting net margin of 19.5 percent. Excluding the one-time tax benefit of ₹259 crores, the adjusted net profit for the quarter was ₹1050 crores.

Highlights of FY18 consolidated financials

• Sales/Income from operations at ₹26,066 crores, de-growth of 14 percent over same period last year. However, on constant currency and adjusted for GST impact, the degrowth was ~9.5% over last year.
• India sales at ₹8029 crores, up by 4 percent over the last year.
• US finished dosage sales at USD 1357 million down 34 percent over the last year. US sales for full year last year included benefits of the 180-day exclusivity for generic Imatinib and Olmesartan authorized generics.
• Emerging Markets sales at USD 751 million up by 11 percent over the last year.
• Rest of World sales at USD 461 million, growth of 20 percent over same period last year.
• R&D investments at ₹2249 crores, at 8.6 percent of sales.
• EBITDA at ₹5185 crores, resulting EBITDA margin of 20 percent.
• Net profit at ₹2162 crores, resulting net margin of 8.3 percent. Adjusted for the one-time impact of Modafinil settlement in Q1, deferred tax adjustment in Q3 and one-time tax benefit in Q4, the adjusted net profit for FY18 was at ₹3367 crores.

These results were taken on record by the Board of Directors at a meeting held in Mumbai. Dilip Shanghvi, Managing Director of the Company said, “Our Q4 performance is in-line with our guidance. Over the last four quarters, we have been able to record a gradual improvement in performance despite a challenging US generic pricing environment. FY19 will mark the crossing of some important milestones in our specialty journey with the likely launch of 3 specialty products in the US – Ilumya, OTX-101 and Yonsa – which will entail upfront investments. We are also planning to conduct additional clinical trials for a new indication of Ilumya. We will continue to evaluate opportunities in the specialty segment to further enhance this business.” – Medical Buyer Bureau