Sun Pharma's Q1 slid by 46 per cent due to Ranbaxy Integration cost, trading 4 per cent higher intraday

Sun Pharmaceuticals Industries is a specialty pharma company. The company's brands are mainly prescribed for chronic therapy areas like cardiology, psychiatry, neurology, gastroenterology, diabetology, ophthalmology, orthopedics, etc. The company has only one operating segment- pharmaceuticals.

The drug major Sun Pharmaceutical Industry announced its first quarter FY16 result, the consolidated revenue rose by 9.75 per cent and stood at Rs 6757.58 crore compared to Rs 6157 crore Q-o-Q basis. Total expenses reduced by 11.65 per cent to Rs 5148 crore including decreased in depreciation and other expenses by 57.27 per cent and 22.65 per cent respectively. The EBITDA increased by 107.28 per cent to Rs 1849.72 crore, wherein the EBITDA margin expanded by 1288 basis points. Other operating income for the quarter includes the proceeds from brand divestment as mandated by various competition authorities pertaining to the Ranbaxy acquisition.

The bottom line was impacted by exceptional loss, higher tax expenses and lower other income, consolidated net profit disappointed and reduced by 46 per cent to Rs 478.96 crore against Rs 888 crore on sequential basis.

The branded generic sales in India stood at Rs.1784 crores up by 11 per cent Y-o-Y basis. US finished dosage sales stood at USD 48.8 crore, down by 4 per cent compared to last year Q1 result. Emerging Markets sales stood at USD 13.3 crore, down by 15 per cent on yearly basis. Rest of the World sales stood at USD 9.1 crore, down by 7 per cent over same quarter last year. R&D investments stood at Rs. 511 crores, increased by 37 per cent in Q1FY16 as compared to Q1FY15 .

The net profit for the quarter was impacted by exceptional charges of Rs. 685 crores. These exceptional charges relate to impairment of fixed assets and goodwill and other related costs and have arisen on account of integration and optimization measures. The net profit for the quarter was at Rs. 479 crores, down by 60.23 per cent y-o-y.

During the quarter, company changed its shareholding pattern, the FII holding increased by 494 basis points to 23.76 per cent and DII holding increased by 258 basis points to 7.75 per cent.

Today, Sun Pharmaceuticals is trading around 4 per cent higher at Rs 876