Sun Pharma hits 52-week low post Q2 results

The stock ipped 7% to Rs 745 after the company reported a 46% YoY dip in its consolidated net profit at Rs 1,107 cr for the quarter ended September 30, 2015.

Sun Pharmaceutical Industries has dipped 7% to Rs 745, also its 52-week low on the NSE, after the company reported a 46% year on year (YoY) dip in its consolidated net profit at Rs 1,107 crore for the quarter ended September 30, 2015 (Q2) due to lower sales growth, volatile currency movements and supply constraints.

The drug maker had posted a net profit of Rs 2,050 crore for the corresponding period of the previous fiscal.

Consolidated net sales of the company declined 15% to Rs 6,803 crore during the quarter under review against Rs 7,979 crore in the corresponding quarter of previous fiscal.

Analysts on an average had expected profit of Rs 1,233 crore and net sales of Rs 6,968 crore for the quarter.

EBITDA (earnings before interest, tax, depreciation, and amortization) margin declined 400 basis points at 28% compared to 38% for Q2 last year, Sun Pharmaceuticals said in a release.

Commenting on the results, Sun Pharma Managing Director Dilip Shanghvi said: "Our performance for the quarter and first half FY16 has been impacted by lower sales growth, volatile currency movements and supply constraints."

Nonetheless, "we continue to invest significantly in enhancing our specialty and complex generics pipeline. Integration of Ranbaxy is progressing well and while some of the costs have been incurred, the benefits will be visible going forward. We also continue to evaluate opportunities to expand our global foot print," he added.

At 10:40 AM, the stock pared its early losses and down 4% at Rs 769 on the NSE.  A combined 3.68 million shares changed hands on the counter on the BSE and NSE.