Sun Pharma reports Q4 and FY18 results

Sun Pharmaceutical Industries Ltd. reported financials for the fourth quarter and full year ending March 31, 2018. Highlights of Q4FY18 consolidated financials:

• Sales/income from operations at Rs. 6711 crore, de-growth of 2 percent over the same quarter last year. The decline is primarily driven by the US and the API businesses. All other businesses have recorded positive growth for the quarter
• India sales at Rs. 1963 crore, growth of 2 percent over Q4 last year
• US finished dosage sales at USD 368 million down by 3 percent over Q4 last year
• Emerging markets sales at USD 199 million up by 10 percent over Q4 last year
• Rest of World sales at USD 116 million, growth of 6 percent over Q4 last year
• R&D investments at Rs. 743 crore (11 percent of sales) compared to Rs. 600 crore (9 percent of sales) for Q4FY17
• EBITDA at Rs. 1417 crore, resulting in an EBITDA margin of 21.1 percent
• Other operating income for the quarter is at Rs. 266 crore which includes USD 20 million of milestone payment from Almirall S.A (Spain) as part of the licensing agreement for the development and commercialization of Tildrakizumab for psoriasis in Europe
• Net profit for the quarter is at Rs. 1309 crore, resulting net margin of 19.5 percent. Excluding the one-time tax benefit of Rs. 259 crore, the adjusted net profit for the quarter was Rs. 1050 crore.

Highlights of FY18 consolidated financials:

• Sales/income from operations at Rs. 26,066 crore, de-growth of 14 percent over the same period last year. However, on constant currency and adjusted for GST impact, de-growth was ~9.5 percent over last year
• India sales at Rs. 8029 crore, up by 4 percent over the last year
• US finished dosage sales at USD 1357 million down 34 percent over the last year. US sales for full year last year included benefits of the 180-day exclusivity for generic Imatinib and Olmesartan authorized generics
• Emerging markets sales at USD 751 million up by 11 percent over the last year
• Rest of world sales at USD 461 million, growth of 20 percent over the same period last year
• R&D investments at Rs. 2249 crore, at 8.6 percent of sales
• EBITDA at Rs. 5185 crore, resulting EBITDA margin of 20 percent
• Net profit at Rs. 2162 crore, resulting net margin of 8.3 percent. Adjusted for the one-time impact of Modafinil settlement in Q1, deferred tax adjustment in Q3 and one-time tax benefit in Q4, the adjusted net profit for FY18 was at Rs. 3367 crore.