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Street positive on Sun Pharma's health despite disappointing Q4 results

US litigation issues remain the firm's Achilles heel

Sun Pharma
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FILE PHOTO: A bird flies past the logo of Sun Pharma installed on the facade of its corporate office in Mumbai | Photo: Reuters

Ujjval Jauhari
Sun Pharma’s March quarter (Q4) performance disappointed the Street on all fronts. 

Sales at Rs 7,044 crore, though up 5 per cent year-on-year (YoY), missed consensus estimates of Rs 7,537 crore. Operating and net profit, too, were significantly below estimates. The Q4 show was, however, impacted by a change in distribution arrangement for the India business, pegged at Rs 1,085 crore. 

India sales, which contribute about a fourth to overall sales, were down 44 per cent YoY. Adjusted for this change, India revenues were in line with estimates. Nevertheless, the US business showed some traction, marking 20 per cent growth in constant

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First Published: May 28 2019 | 10:50 PM IST

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