Sun Pharma rallies 6% post Q4 results

The stock rallied 6% to Rs 496 on the BSE in early morning trade after the drug maker reported a net profit of Rs 13.08 billion in March 2018 quarter.

Shares of Sun Pharmaceutical Industries have rallied 6% to Rs 496 per share on the BSE in early morning trade after the drug maker reported a net profit of Rs 13.08 billion in March 2018 quarter (Q4FY18) as against Rs 12.23 billion in the same quarter last year aided by one-time tax gain of Rs 2.59 billion.

Revenue from operations declined 2% to Rs 67.11 billion on account of continued pressure in the US market.

“The decline in revenue is primarily driven by the US and the API businesses. All other businesses have recorded positive growth for the quarter,” Sun Pharma said in a press release.

EBITDA (earnings before interest, tax, depreciation and amortisation) margin improved to 21.1% from 18.1% in previous year quarter.

Dilip Shanghvi, Managing Director of the Company said, “Our Q4 performance is in-line with our guidance. Over the last four quarters, we have been able to record a gradual improvement in performance despite a challenging US generic pricing environment.

“FY19 will mark the crossing of some important milestones in our specialty journey with the likely launch of 3 specialty products in the US – Ilumya, OTX-101 and Yonsa – which will entail upfront investments. We are also planning to conduct additional clinical trials for a new indication of Ilumya. We will continue to evaluate opportunities in the specialty segment to further enhance this business,” added Shanghvi.