New Delhi: Sun Pharma on Tuesday reported 60 per cent dip in consolidated net profit to Rs 478.96 crore for the quarter ended June 30, pulled down by impairment charges and expense of Rs 685.17 crore on account of integration and optimisation post the Ranbaxy merger.
Sun Pharma had posted net profit after taxes and minority interest of Rs 1,204.59 crore for the April-June period of last fiscal, 2014-15.
Total income of the company increased however to Rs 6,767.58 crore during the first quarter of 2015-16 as against Rs 6,341.21 crore for the year ago period.
Sun Pharmaceutical Industries Managing Director Dilip Shanghvi said: "Our performance for the quarter has been impacted by certain one-time and exceptional charges which will drive synergies and overall profitability improvement in the long-term."
The company had a one-time item as well as exceptional charges of Rs 685 crore.
"These exceptional charges relate to impairment of fixed assets and goodwill and other related costs and have arisen on account of integration and optimisation measures," the company said. Sun Pharma had completed the USD 4 billion merger deal with Ranbaxy Laboratories in March this year.
Shanghvi said nonetheless, "we continue to invest significantly in R&D and in building critical talent for enhancing our speciality and complex generics pipeline".
As a part of this initiative, Sun pharma has strengthened ophthalmology and OTC teams in the US as well as formed a dedicated team for a new drug molecule which is currently undergoing Phase-III clinical trials.
Sale of branded prescription formulations in India for first quarter of FY16 was Rs 1,784 crore, up 11 per cent from the corresponding quarter last year and accounting for 27 per cent of the total sales, Sun Pharma said.
Sales in the US stood at USD 488 million for the quarter, down 4 per cent from the first quarter of last fiscal and accounted for 47 per cent of total sales.
"Sales for the quarter (in the US) were impacted primarily due to competitive pressure on some products and temporary supply constraints arising from remediation efforts at the Halol facility," Sun Pharma said.
The company's Israeli arm Taro recently posted sales of USD 215 million, up 65 per cent from the same quarter of last fiscal. Taro's net profit for the first quarter was USD 104 million, up 125 per cent from a year ago, it added.
In the emerging markets, sales stood at USD 133 million in the first quarter, down 15 per cent from the year-ago period and accounted for 13 per cent of the total sales.
The decline is the result of volatile currency movements in certain emerging markets and a strategic decision of not participating in low margin businesses, Sun Pharma said.
