Sun Pharmaceutical Industries on Monday reported a surprise net loss of Rs 2,277.2 crore for the fourth quarter ended March 31, 2022, dragged by subsidiary Taro Pharmaceutical's antitrust payments and other lawsuit settlements in the US. The one-time loss was quoted to be Rs 3,935.7 crore.
In the corresponding quarter last year, the drug manufacturer posted a net profit of Rs 894.1 crore. CNBC-TV18 Polls had predicted a profit of Rs 1,719.3 crore for the quarter under review.
The company incurred a loss of Rs 3,723.15 crore as part of the one-time settlement with US authorities. In an exchange filing, the firm said: “The parent company and certain of its subsidiaries are defendants in a number of class-action lawsuits brought by purchasers and payers in the US alleging violation of antitrust laws with respect to ANDAs for Valganclclovir, Valsartan and Esomeprazole." It added that on March 23, 2022, a settlement amount of $485 million and related legal charges of $8.3 million pertaining to lawsuits were made.
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During the quarter and year ended March 31, 2022, the company also incurred a one-time cost of Rs 56.35 crore in relation to the restructuring of operations in certain countries and this has been disclosed as an exceptional item.
At the operating level, EBITDA jumped 14.3 percent to Rs 2,340.3 crore in Q4 FY22 over Rs 2,048 crore in Q4 FY21. EBITDA margin stood at 24.8 percent in Q4 FY22 as compared to 24 percent in Q4 FY21. EBITDA is earnings before interest, tax, depreciation and amortization.
Consolidated sales from operations stood at Rs 9,386 crore in the fourth quarter. The company had reported sales from operations at Rs 8,464 crore in the year-ago period. During the period under review, the company said it incurred a one-time cost of Rs 56.35 crore for restructuring operations in certain countries.
The results came after the close of the market hours. Shares ended at Rs 888.10, down by Rs 15.85, or 1.75 percent on the BSE.
The Board has proposed a final dividend of Rs 3.0 per share for the year FY22. This is in addition to the interim dividend of Rs 7.0 per share paid in FY22, taking the total dividend for FY22 to Rs 10 per share compared to Rs 7.5 per share for FY21.
Dilip Shanghvi was reappointed as managing director for a period of five years. "FY22 was a good year with strong topline and EBITDA growth. All our geographies recorded double-digit growth and profitability has improved despite rising costs," Shanghvi said.
"Our India business continues to grow faster than the market, leading to an increase in market share. We continue to focus on expanding our global specialty business, growing all our businesses and on improving operational efficiencies," he added.
First Published: May 30, 2022 4:10 PM IST
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