Sun Pharma Q1 net, sales rise

Our Corporate Bureau
28 July 2003

The company''s total sales stood at Rs 216.4 crore, up by 12.7 per cent, as compared to the corresponding period of the previous fiscal and the net profit went up by 14 per cent to Rs 54.7 crore.

The quarter saw Sun Pharma''s domestic formulation sales going up marginally to Rs 128.8 crore as against Rs 126.1 crore clocked the previous year''s first quarter. Total exports for the period under review increased by 31 per cent to Rs 43 crore (formulations: Rs 11 crore; speciality bulk active: Rs 32 crore).

The company''s new export strategy, implementing a totally new business plan with a new team and a select product basket in each of its markets, seems to have clicked.

Sun Pharma''s 49.39-per cent subsidiary, Detroit-based Caroco Pharmaceutical Laboratories, sources part of its requirements for three bulks from Sun Pharma, based on the drug master files approved. This has led to significant reduction in the raw material cost and better schedules for the American company.

The quarter also saw doubling of research and development (R&D) spend to Rs 26 crore compared to the previous fiscal''s first quarter. Sun Pharma expects to invest around Rs 75 crore in R&D this year.

According to company officials, the construction of a formulation plant in Jammu is progressing as per plans. The Rs 25-crore plant is expected to be commissioned this year. Two R&D centres — in Baroda and Mumbai — will also go on stream this year.