Sun Pharma Q2 profit dives 59%, but beats estimates

Sun Pharma Q2 profit dives 59%, but beats estimates

India's largest drugmaker Sun Pharmaceutical Industries reported a 59 percent plunge in second-quarter profit on Tuesday, hurt by generics pricing pressure in the United States.

The company had posted a net profit of Rs 2,235.14 crore for the corresponding period of the previous fiscal, Sun Pharmaceutical Industries said in a BSE filing.

EBITDA (earnings before interest, tax, depreciation and amortisation) is likely to fall 57 percent to Rs 1,357.4 crore and margin may shrink 1830 basis points to 20 percent YoY.

"A challenging U.S. generic pricing environment coupled with continued investments in building our global speciality business has impacted our Q2 performance". "We expect our performance to gradually improve in the second half of this year", Sun Pharma's Managing Director Dilip Shanghvi said in a statement. Domestic sales grew 11 per cent to Rs 2,221 crore. US sales for the quarter fell 44 percent to $309 million while sales from India rose 11 percent.

Taro Pharma, which contributes 16 percent to total sales and over 30 percent of total EBITDA, reported a 57.6 percent fall year-on-year in profit at Dollars 52.4 million for July-September quarter.

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