Sun Pharmaceuticals has posted a growth of 50% in net profit for 2QFY02, compared to the corresponding period last fiscal. Sales have jumped by more than 29% to touch Rs 1,962 m. Operating margins increased by 470 basis points to 27%, which is amongst the best in the industry. The performance of the company has been far above market expectation.
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The better than expected performance has been on the back of 130% growth in exports. The growth in exports was helped mainly due to merger with Sun Pharma Exports Ltd. However, even excluding the merger effect, net profit has grew by 35%. In the domestic formulation business, sales grew by 28%, far outperforming industry growth rates. The growth was on the back of a aggressive launch of new products. The company has launched more than 25 new products in last one quarter across various therapeutic segments.
Sun Pharma has informed that Caraco Pharma, the US affiliate of the company expects 2 ANDA (Abbreviated New Drug Application) approvals by the end of the current calendar year. Caraco already has 3 ANDA approvals to its credit. Exports on account of this ANDA could help the Caraco Pharma to come out of red, which remains a major cause for concern.
At Rs 575, the company trades at a P/E multiple of 14x annualised earnings for 2QFY02.
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