Sun Pharma continued its good run, outpacing the overall pharmaceutical industry. While the topline shot up by over 28%, the bottomline grew by a mind boggling 55%.
During the quarter the amalgamated the operations of Gujarat Lyka by allotting 0.47 m shares in the ratio of 1 share for every 21.33 shares of Gujarat Lyka. If one were to account for the fact that the sales figures for corresponding quarter in the previous year, did not include domestic bulk drug sales of Rs. 61.3 m of Gujarat Lyka, the topline growth comes to around 21.6%, which is still very creditable. The earnings also include the profit of Sun Pharmaceutical Exports, a 99.28% subsidiary of the company which is proposed to be merged with the company with effect from April 2000.
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Coming to the operations themselves the company is currently ranked 5th by retail prescription sales, up from 10th position last year (ORG Retail Chemist Audit, May 2000 & 1999) . Six of the company's speciality brands feature in the top-selling list of 300 pharma brands in the domestic market.
During the quarter the company launched seven new products key among these were the Cox 2 inhibitor for the treatment of arthritis, Rofact (rofecoxib), the type 2 oral antidiabetic Glypride (glimiperide), Nodict (naltrexone) for use in drug abuse treatments, the allergy treatment Fexotrol (fexofenadine). Milmet's range was enhanced with the addition of Azelast eyedrops (azelastine), and Ketorid eye drops (ketotifen).
The management has made a statement that their strategy of focus on niche specialty areas would continue in the near future too and they are confident of maintaining double the industry growth rate for the year.
The stock quotes at Rs 595, which discounts the annualised earnings by 21.4 times.
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