Sun Pharma plunges on profit warning

The stock has plunged 16% after the drug maker said its profit might be "adversely impacted" in financial year 2015-16.

Shares of Sun Pharmaceutical Industries plunged 16% to Rs 795 on the NSE in early morning trades after the drug maker said its profit might be "adversely impacted" in financial year 2015-16 (FY16), owing to expenses related to its integration with Ranbaxy, as well as remedial action at plants under the scanner.

Consolidated revenues will remain flat or show a decline over FY15. Consolidated profits may also be adversely impacted due to certain expenses/charges arising out of integration as well as remedial actions, Sun Pharma said in a release.

As part of the integration process, the company expects to incur certain integration charges to generate long-term synergies from this merger. Also, as part of the process, the company might decide to discontinue certain non-strategic businesses, Sun Pharma added.

At 09:26 AM the stock down 14% at Rs 818 on the NSE. A combined 8.78 million shares changed hands on the counter on the NSE and BSE so far.