New Delhi: Drug major Sun Pharma on Saturday reported 6.92 percent decline in consolidated net profit at Rs 1,425.07 crore for the third quarter ended December 31, 2014-15, saying it was hit by supply constraints.
The company had posted a net profit of Rs 1,531.09 crore for the October-December period of the previous fiscal.
Net sales of the company declined to Rs 4,279.54 crore for the quarter under consideration, as against Rs 4,286.59 crore during the same period of 2013-14, Sun Pharmaceutical Industries said in a statement.
"Our Q3 performance reflects our ability to maintain strong profitability despite temporary supply constraints resulting primarily from the on-going compliance efforts. We are currently maintaining our FY15 sales guidance," Sun Pharma Managing Director Dilip Shanghvi said.
During the third quarter, the company's sale of branded prescription formulations in India stood at Rs 1,150 crore, up by 21 percent from the year-ago period.
The company said its sales in the US market stood at USD 413 million for the quarter, down by 5 percent, accounting for 59 percent of total sales.
The Mumbai-based firm's formulation sales in the global markets, excluding US, accounted for USD 72 million in third quarter, registering a de-growth of 15 percent.
Consolidated R&D expense for third quarter stood at Rs 389 crore, or 9 percent of sales.
"This includes significant investments on account of funding the clinical development of Tildrakizumab, the psoriasis monoclonal anti-body recently in-licensed from MSD (US)," the company said.
The company, which is in the process of acquiring Ranbaxy Laboratories in a USD 4 billion deal, said approval for the deal from the High Court of Punjab and Haryana is pending.
"Both Sun Pharma and Ranbaxy will also have to meet the pre-conditions required as per the order of the Competition Commission of India and the US FTC," it added.
