The company’s consolidated revenues in the quarter rose 28 per cent year-on-year to Rs 9,719 crore, which was sharply above analysts’ expectations.
During the quarter, the company reported a one-time exceptional loss of Rs 631 crore in relation to payments made for settlement of antitrust litigations filed by the US Department of Justice against arm Taro Pharmaceutical Industries as well as impairment of certain assets.
Sun Pharma said that it made a provision of Rs 442 crore in the quarter ended June in relation to the anti-trust lawsuit settlement with the US government. Further, the company took charge of Rs 150 crore during the quarter for impairment of acquired intangible assets under development and Rs 38 crore write down of assets under IND AS 105.
The settlement of the multi-year antitrust lawsuit with the US government is a major relief for the company and its subsidiary as it remained an overhang on earnings given that it could have led to criminal and civil action against the company if found guilty in the US courts.
The strong topline growth of the company in the June quarter was aided by a low base of the year-ago quarter, which was affected by the national lockdown in India and reduced sales in major export markets.
Sun Pharma’s US operations were the star of the quarter as they registered sales growth of over 35 per cent year-on-year to $380 million. At the same time, Indian operations also saw a 39 per cent on-year rise to Rs 3,308 crore in the quarter.
“We witnessed a strong Q1, driven by a combination of robust core business growth, low base and some sales of Covid products. We are enthused by the all-round growth across all our businesses compared to Q4 last year,” said Managing Director Dilip Shanghvi in a press statement.
On the operating front, the company had a strong show as consolidated operating profit surged 59 per cent year-on-year to Rs 2,771 crore with operating margins at 28.7 per cent.
“We are happy with Ilumya’s performance, which has grown both YoY and sequentially. We continue to focus on growing our overall business and simultaneously strengthening our global specialty portfolio,” Shanghvi said.
During the quarter, Sun Pharma spent Rs 592.6 crore on research and development, up 41 per cent from the year-ago quarter.
Shares of Sun Pharma were up 7.9 per cent at Rs 758.5 on the National Stock Exchange.