Sun Pharma posts Rs 9.8 bn Q1 profit, beats estimates as US sales climb

India's largest drugmaker Sun Pharmaceutical Industries Ltd posted a first-quarter profit on Tuesday, beating street estimates, helped by stronger sales in the United States.

Net profit came in at Rs 9.83 billion for the three months ended June 30, compared with a loss of 4.25 billion rupees a year earlier, the company said.

In the year-ago quarter, Sun Pharma incurred costs of Rs 9.51 billion related to settlements in a US antitrust case over sleep-disorder drug Modafinil.

Analysts on average expected a net profit of Rs 8.97 billion.

Sales from its US formulations business, which constitutes over a third of total sales, grew 8 per cent from the previous corresponding quarter.

Sales of branded formulations in India rose 22 per cent as the implementation of a nation-wide GST impacted sales last year.

Total revenue from operations rose about 16 per cent to Rs 72.24 billion.

Smaller rivals Lupin Ltd reported a fall in June-quarter net profit earlier, hurt by declining US sales while Cipla Ltd posted a better-than-expected quarterly profit on the back of strong domestic sales.

Sun Pharma stock jumped nearly 8 per cent after the results. It was the top percentage gainer on the broader Mumbai market that was up 0.73 per cent.