India's largest drugmaker, Sun Pharmaceutical Industries Ltd, posted a 59 per cent plunge in second-quarter profit on Tuesday, but beat estimates.
The generic drug maker reported a net profit of 9.12 billion Indian rupees ($139 million) in the July-September period, compared with INR22.35 billion a year earlier.
The overall total revenue from operations stood at Rs 6,650.34 crore. However, the profit exceeded analysts' expectations of 8.27 billion rupees on back of a sharp cut in tax expenses.
Analysts on average had expected a profit of Rs 827 crore, according to Thomson Reuters data.
"A challenging United States generic pricing environment coupled with continued investments in building our global speciality business has impacted our Q2 performance".
The company expects the performance to gradually improve in the second half of this year, he added. Sun's US unit Taro Pharmaceutical reported a 58% decline in net profit after sales fell 26%. U.S. generic sales accounts 30 percent of Sun Pharma's revenues.
Sales in the USA stood at Dollars 309 million for the quarter, a de-growth of 44 per cent over same period a year ago and accounted for 30 per cent of the total sales, it added. For Q2FY18, the company launched 14 new products in the Indian market. The company said its research and development expenses in the last quarter accounted for 7.7% of sales, compared with 7.4% a year earlier. The firm's rest of the world sales were $111 million, which grew by 40 per cent over Q2 a year ago.
Active Pharmaceutical Ingredients (API) business largely meant for captive consumption rose 6 percent to Rs 388 crores.