Sun Pharma proved the on Monday of early trades today as it beat analysts' projections with an 84% jump in net profit.

By 9:57 IST, the scrip of the domestic pharmaceuticals major surged 6.78% to Rs 293 as a direct consequence of its excellent showing. But volumes did not match that jump in price, as they were merely at 200 shares.

On Saturday, Sun Pharma said that, for the fourth quarter ended 31 March 2003, net profit jumped a voluminous 84% to Rs 74.17 crore and net sales by 30% to Rs 210.16 crore (Rs 2.1 billion).

capitalmarket.com poll (of six pharma analysts)'s projections for the company were - a net profit of Rs 43-50 crore and net sales of Rs 190-209 crore (Rs 1.9 billion).

A 47% surge in formulation sales to Rs 173.82 crore (Rs 1.73 billion) (inclusive of indirect taxes) boosted overall sales even as that of bulk drugs actually fell 4% to Rs 58.71 crore. Formulation sales grew an impressive 47% to Rs 161.79 crore (Rs 1.61 billion) in the domestic market. Domestic formulation sales include a special price supply of Rs 35 crore, which is reflective of next month's sales. On a like to like basis, after accounting for this extra supply, domestic formulation sales are up 15.1%. Export of formulation were impressive at 48% to Rs 12.03 crore. On the other hand, domestic sales of bulk drugs fell by 14% to Rs 29.17 crore, while bulk drug exports improved by 10% to Rs 29.54 crore.

Altogether, domestic sales grew by 33% to Rs 144.22 crore (Rs 1.44 billion), while exports grew by 16% to Rs 41.99 crore.

For the full year ended 31 March 2003, net profit climbed 35% to Rs 231.41 crore (Rs 2.31 billion) on a 14% increase in sales to Rs 759.27 crore (Rs 7.59 billion).

On a consolidated basis, for the year ended 31 March 2003, the company posted a net profit of Rs 247.50 crore (Rs 2.47 billion) on net sales of Rs 888.63 crore (Rs 8.88 billion). Sun's subsidiaries include Zao Sun Pharma Ind -Russia, Sun Pharma Global Inc-BVI, Milmet Pharma, Sun Pharmaceutical (Bangladesh) and Caraco Pharmaceutical Laboratories.

In view of the impressive performance, the board of directors has recommended a divided of 100% (ie Rs 5 per share on a face value of Rs 5 per share) for FY 2002-03, double the dividend declared in the previous year.

Going ahead, the company is expected to do well on both fronts - domestic sales as well as exports. The company's US affiliates are also expected to gain in market share.

In January 2003, Sun Pharma announced a buy-back programme to mop up 2 million shares of Rs 10 (face value) or 4 million shares of Rs 5 (face value). After this, the company had split its equity share of Rs 10 each into two equity shares of Rs 5 each. The maximum limit for the buy-back is set at 25% of the paid-up equity capital of the company. The buy-back is being conducted through the open market at a maximum price of Rs 750 per share of Rs 10 each or Rs 375 per equity share of Rs 5.

The company has so far acquired 5,40,138 equity shares of Rs 5 each, under the buy-back scheme, through open market route. Similarly, the company has redeemed, in FY 2002-03, 301,000 shares out of 18.72 lakh 6% cumulative redeemable preference shares of Rs 1 each at par.

The promoters' stake in the company has increased to 71.75% in March 2003 from 71.47% in December 2002, on account of reduction in capital due to the buy-back of shares during this period.

BSE code: 524715