MUMBAI : Sun Pharmaceutical Industries Ltd’s third-quarter consolidated net profit beat Street estimates, surging 73.7% on year to 15.31 bln rupees. Moreover, the company revised upwards its growth guidance to 29% from 25% earlier for the full year ending March 2014.
Sales during Oct-Dec jumped 50.3% to 42.87 bln rupees driven by a strong 57% growth in its mainstay US business. “Our overall performance reflects the focus on execution of our strategy.
We are developing a differentiated and specialty business and continue to evaluate opportunities to enhance our global presence,” Managing Director Dilip Shanghvi was quoted saying in a company release. Analysts had pegged the Mumbai-based company to report a net profit of 13.38 bln rupees and sales of 41.79 bln rupees.
Reacting to the robust results, shares of Sun Pharmaceutical briefly rose up to a high of 623.20 rupees on the National Stock Exchange. The stock ended up 0.7% at 615.30 rupees.
The company has revised its guidance enthused by the good performance in the first nine moths. Besides, the higher guidance accounts for the risks associated with an increase in competition for some products.
On the revenue front, sales in the US market, that accounts for 62% of the company’s total sales, grew 57% on year to $434 mln. Sun Pharmaceutical acquired DUSA Pharmaceuticals in November 2012 and URL Pharma in December 2012, and started consolidating their numbers in Jan-Mar 2013.
International formulation sales outside US stood at $84 mln, up 16% from a year ago. Overall, the company’s international revenues accounted for more than 75% of total sales during the quarter.
The domestic formulation business posted an impressive 20% growth on year with sales of 9.47 bln rupees for the quarter. -Cogencis