Sun Pharma Q4 net up 26 per cent

08 June 2006

Fourth quarter and full year results of Sun Pharmaceuticals clearly show margin pressures because of higher input and R&D expenses. The company has managed to achieve impressive growth in the top line despite pricing pressures, especially in the US generics market.

For the quarter ended 31st March 2006, standalone net profits increased 25.76 per cent to Rs115.89 crore from Rs92.15 crore for the previous year quarter. Quarterly revenues increased 39.04 per cent to 454.43 crore from Rs326.83 crore.

Operating profits for the quarter went up by 24.03 per cent. Operating margins as a percentage of net sales declined to 24.74 per cent from 27.4 per cent for the previous year quarter.

Material and production costs increased 57.33 per cent during the quarter while R&D expenses went up by 49.11 per cent. Staff costs were higher by 57.47 during the quarter while other expenses increased by 65.88 per cent.

Depreciation charges were higher by 30.56 per cent while provision for taxes went up by nearly 150 per cent. An increase of 62.43 per cent in other income helped the company to protect its bottom line.

Standalone net profits of the company for the full year 2005-06 increased 40.97 per cent to Rs461.29 crore from Rs327.22 crore for the previous year. Standalone revenues were higher by 38.12 per cent at Rs1,805.02 crore as compared to Rs1,306.83 crore for the previous year.