Sun Pharmaceuticals Industries hits 52 week low at Rs 745.95 after Q2FY16 results

Sun Pharmaceuticals Industries (SPIL) declared its Q2FY16 results. The company's consolidated revenue increased by 1.18 per cent to Rs 6838 crore in Q2FY16 as compared to the previous quarter. Its total expenditure declined by 0.08 per cent to Rs 4904 crore in Q2FY16 on quarterly basis.

SPIL's EBITDA rose by 4.54 per cent to Rs 1934 crore in Q2FY16 as compared to previous quarter. The company's EBITDA margin expanded by 91 basis points to 28.28 per cent in Q2FY16 on quarterly basis. Its EBIT increased by 3.29 per cent to Rs 1663 crore in Q2FY16 on quarterly basis as depreciation expense increased by 12.91 per cent to Rs 271 crore during the quarter. SPIL's PBT increased by 88.07 per cent to Rs 1706 crore in Q2FY16 as other income rose by 81.55 per cent to Rs 191 crore during the quarter. The company had exceptional loss of Rs 685 crore in Q1FY16 against zero in Q2FY16. If you exclude the exceptional part then PBT improved by just 7.2 per cent during the quarter. Meanwhile, its interest expense increased by 20.66 per cent to Rs 148 crore in Q2FY16 as compared to previous quarter. SPIL's net profit boosted by 131.05 per cent to Rs 1107 crore in Q2FY16 on quarterly basis. The company's net profit margin expanded by 909 basis points to 16.18 per cent in Q2FY16 on quarterly basis.

On yearly basis, SPIL's EBITDA boosted by 43.36 per cent to Rs 6838 crore in Q2FY16. The company's total expenditure increased by 89.39 per cent to Rs 4904 crore in Q2FY16 on yearly basis. Its total expenditure increased predominantly due to 105.83 per cent increment in raw material prices,76.17 per cent increment in other expenses and 113.64 per cent increment in employee expense during the quarter.

The EBITDA of the SPIL decreased by 11.3 per cent to Rs 1934 crore in Q2FY16 on yearly basis. The company's EBIT declined by 17.41 per cent to Rs 1663 crore in Q2FY16 on yearly basis as depreciation expense increased by 62.19 per cent to Rs 271 crore during the quarter. Its net profit decreased by 29.62 per cent to Rs 1107 crore in Q2FY16 as compared to same period in previous financial year.Considering the geographic segment revenue, SPIL's India business stood at Rs 1819 crore, US finished dosage sales at USD 510 million, Emerging Markets at USD 140 million and Rest of the World at USD 76 million during the quarter.

SPIL has comprehensive product offerings in the US market with approved ANDA's of 445 products while 154 products awaiting for US FDA approval including 12 tentative approvals. In Q2FY16 it received 4 approvals.

SPIl's shareholding pattern indicates that FII holdings expanded by 380 basis points to 27.56 per cent and DII holdings also expanded by 31 basis points to 8.06 per cent during the September 2015 quarter. The share price of the company decreased by 7.19 per cent on bourses in early trades and is trading at Rs 766.8 on intraday basis.

SPIL's business segments include US Business, which includes Western Europe, Canada, Australia, New Zealand and Other Markets; Indian Branded Generics Business, including Global Consumer Healthcare Business, and Emerging Markets, which include Active Pharmaceutical Ingredients (APIs). The Company's manufacturing operations are focused on producing generics, branded generics, specialty products, over-the-counter products, anti-retro-viral and active pharmaceutical ingredients (APIs). The Company caters various therapy areas, such as dermatology, psychiatry, neurology, cardiology, nephrology, gastroenterology, orthopedics and ophthalmology.