Sun Pharma Q4 net up 38% to Rs143 crore

MUMBAI: Buoyed by higher exports, domestic pharmaceutical player, Sun Pharma, has posted a net profit of Rs 142.9 crore for the fourth quarter ended March ‘06, registering a growth of 38% from the corresponding period last year. Total income for the quarter was at Rs 475.1 crore, up 49%.

The company’s board has recommended a dividend of 110%.

For the year ended March ’06, Sun Pharma’s net profit grew 45% to Rs 573.2 crore, driven by a strong growth in its exports. Formulations exports rose by 37% to Rs 503.8 crore. Exports now accounts for almost 40% of the company’s total sales. Total income for the year was at Rs 1796.3 crore — a growth of 46%.

Among its international operations, the company’s US subsidiary — Caraco Pharma — recorded annual sales of $82.8m, registering a growth of 29%. For the fourth quarter, sales were at $24.7m, up 43% over the previous comparable period. Sun Pharma’s R&D spend was at Rs 202.9 crore, up 41% from last year. Consolidated R&D expense was at 11.7% of gross sales. Revenue R&D expense was at Rs 155.1 crore, or 8.8% of gross sales.

The company recently announced plans to demerge the innovative part of its R&D. According to the company, the projects related to new molecule and novel drug delivery system technologies continue to present strong growth opportunity.

Domestic formulations was at Rs 959.6 crore, registering a growth of 41%. Sun Pharma now has 3.28% market share in the domestic pharma, according to the ORG IMS Stockist Secondary Audit March ’06. The company launched over 32 products across all marketing divisions.

Shares of Sun Pharma closed at Rs 721.4 on the Bombay Stock Exchange on Wednesday, down 5.56% from the previous close.