Sun Pharma Q2 profit dives 59%, but beats estimates

India's largest drugmaker, Sun Pharmaceutical Industries Ltd, posted a 59% plunge in second-quarter profit on Tuesday, but beat estimates.

Consolidated net profit for the quarter ended in September fell 59% to 9.12 billion rupees ($139 million) from 22.35 billion rupees a year earlier, the company said in a statement on Tuesday.

Analysts on average had expected a profit of Rs 827 crore, according to Thomson Reuters data.

Sun Pharma Managing Director Dilip Shanghvi cited the pricing environment for the second-quarter profit fall but said results had also been hit by the company's continued investment in its speciality drugs business.

Sales in the U.S. stood at United States dollars 309 million for the quarter, a de-growth of 44 per cent over same period previous year and accounted for 30 per cent of the total sales, it added. For Q2FY18, the company launched 14 new products in the Indian market.

In the emerging markets, the sales were at Dollars 196 million for the second quarter this fiscal, a growth of 16 per cent compared to the same quarter a year ago and accounting for 19 per cent of the total sales, the company said.

Active Pharmaceutical Ingredients external sales were at Rs 388 crore for second quarter of the current fiscal, up 6 per cent from the corresponding period of the previous fiscal, Sun Pharma said.

Consolidated R&D expense for Q2FY18 was Rs. 511 crores, or 7.7% of sales compared to Rs. 570 crores or 7.4%.

Sun Pharma has 422 ANDAs approved in USA market. while filings for 136 ANDAs await approval, including 15 tentative approvals. According to media reports, starting Tuesday, the US drug regulator is conducting a surprise inspection at another plant in Baska, near Halol, that manufactures several injectable drugs the company filed for approval in the U.S.