Sun Pharma Q3 net up better-than-expected 32% at Rs 881cr

Sun Pharmaceutical Industries  beat street expectations on Friday with a third quarter net profit of Rs 881 crore, up 32 percent year-on-year, helped by strong growth across its businesses, including arm Taro Pharma.

The pharma major's third quarter net sales rose 33 percent from a year ago to Rs 2,852 crore.

Analysts on average were expecting Sun Pharma to report a net profit of Rs 838 crore on revenue of Rs 2,645 crore,  according to a CNBC-TV18 poll.

The company's Israel-based subsidiary Taro Pharmaceutical recently reported a 42 percent rise in third quarter net profit at USD 89 million, while net sales gained 25 percent to USD 186 million.

Sun Pharma's EBITDA (earnings before interest, tax, depreciation and amortisation) increased 31 percent to Rs 1,261 crore ahead of analysts' forecast of Rs 1,152 crore.

Operating profit margin at 44.2 percent (down 70 bps YoY) was in-line with expectations.

Sun Pharma's US formulations business also saw strong growth. Sales were up 32 percent at USD 276 million and accounted for 52 percent of total sales.

Its arm recently received US Food and Drug Administration approval for its abbreviated new drug application to launch a generic version of cancer treatment drug Doxorubicin Liposome injection in 2mg/ml strength.

Formulation sales in rest of the world (excluding India and US) grew 31 percent to USD 73 million, Sun Pharma said.

Branded generic drug sales in India were up 13 percent at Rs 788 crore.

Sun Pharma shares were up 0.1 percent at Rs 750.55 on NSE in noon trade on Friday.