Sun Pharmaceutical Industries on Tuesday reported 70.4 per cent year-on-year (YoY) rise in consolidated net profit at Rs 1,812.79 crore for the second quarter ended September 30, 2020, on the back of improvement in operating performance and tax credit. The Mumbai-headquartered pharma firm had posted a net profit of Rs 1,064.09 crore in the September quarter of FY20, Sun Pharma said in a filing to the Bombay Stock Exchange.
The drug major's revenue from operations grew 5.29 per cent to Rs 8,553.13 crore, from Rs 8,123.35 crore in the corresponding quarter.
At the operational front, Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 22.5 per cent to Rs 2,193.3 crore, while margin expanded by 360 bps to 25.6 per cent compared to September quarter of previous year.
For the July-September quarter of the current fiscal, Sun Pharma reported exceptional tax gain on account of creation of deferred tax asset amounting to Rs 288.28 crore arising out of subsequent measurement attributable to restructuring of an acquired entity.
The company incurred a forex loss of Rs 116.4 crore during Q2 FY21, against forex gain of Rs 8.5 crore in in the year ago period.
On impact of COVID-19, the drug maker said it continues to monitor the impact of the pandemic on its business, including its impact on customers, supply-chain, employees and logistics. "Due care has been exercised, in concluding on significant accounting judgements and estimates, including in relation to recoverability of receivables, assessment of impairment of goodwill and intangibles, investments and inventory, based on the information available to date, while preparing the company's financial results as of and for the quarter and half year ended September 30, 2020," it said.
The company's net worth declined to Rs 44,699.84 crore at the end of September quarter of the current fiscal, from Rs 44,891.90 crore in March 2020. The debt equity ratio (long-term borrowings + short-term borrowings + current maturities of long-term borrowings) / (Total equity) declined to 0.13 per cent during September 2020, compared to 0.18 per cent at the end of March quarter.
Following Q2 results, shares of Sun Pharmaceutical Industries closed 3.39 per cent higher at Rs 485.10 apiece on the Bombay Stock Exchange.