Sun Pharma hits 52-week low after weak Q2 outcome

Sun Pharmaceutical Industries lost 4.47% to Rs 767.80 at 09:51 IST on BSE after consolidated net profit fell 46% to Rs 1106.66 crore on 12.2% decline in total income to Rs 7028.93 crore in Q2 September 2015 over Q2 September 2014.

The result was announced on Saturday, 7 November 2015.

Meanwhile, the S&P BSE Sensex was down 358.49 points or 1.36% at 25,906.75

On BSE, so far 3.28 lakh shares were traded in the counter as against average daily volume of 2.88 lakh shares in the past one quarter.

The stock hit a low of Rs 745.95 in intraday trade so far, which is 52-week low for the counter. The stock hit a high of Rs 772 so far during the day. The stock had hit a record high of Rs 1,200.70 on 7 April 2015.

The large-cap company has equity capital of Rs 240.67 crore. Face value per share is Rs 1.

Sun Pharmaceutical Industries (Sun Pharma)'s earnings before interest, taxation, depreciation and amortization (EBITDA) margin declined to 28% in Q2 September 2015 compared with 38% in Q2 September 2014.

Sun Pharma's Q2 September 2015 results were impacted due to base effect. The company had benefitted significantly in Q2 September 2014 from the 180-day exclusivity on Valsartan tablets in the US.

Sale of branded formulations in India rose 1% to Rs 1819 crore in Q2 September 2015 over Q2 September 2014. Sales in the US fell by 28% to $510 million in Q2 September 2015 over Q2 September 2014. Sales in emerging markets declined 16% to $140 million in Q2 September 2015 over Q2 September 2014. Formulation sales in Rest of World (ROW) markets excluding US and Emerging Markets dropped 30% to $76 million in Q2 September 2015 over Q2 September 2014.

Dilip Shanghvi, Managing Director of Sun Pharma said that the company's performance in Q2 September 2015 and first half of the current financial year was impacted by lower sales growth, volatile currency movements and supply constraints. Integration of Ranbaxy is progressing well and while some of the costs have been incurred, the benefits will be visible going forward, Shanghvi said.

Sun Pharmaceutical Industries manufactures specialty and generic medicines, targeting a wide spectrum of chronic and acute treatments. The therapeutic segments include psychiatry, anti-infectives, neurology, cardiology, orthopaedic, diabetology, gastroenterology, ophthalmology, nephrology, urology, dermatology, gynaecology, respiratory, oncology, dental and nutritionals.

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