Sun Pharma declines on weak quarterly numbers

Shares of drug maker Sun Pharma are trading lower by 8% to Rs 898 on the BSE after the fourth quarterly earnings posted by the company missed street expectations. The company reported a 44% decline in its final quarter net profit, on the back of the Ranbaxy acquisition.

Net profit for the quarter stood at Rs 888 crore, compared with Rs 1,587 crore in the same period last year.  However, the total income for the quarter quoted at Rs 6,157 crore, up 52% as compared with Rs 4,058 crore in the corresponding period previous year.

Net profit for the full financial year stood at Rs 4,540 crore as against Rs 3,141 crore for the January-March quarter previous year, up 44% and the total income jumped from 16,080 crore to Rs 27,433 crore on yearly basis for the corresponding quarter.

Sun Pharma completed its acquisition of Ranbaxy in March, nearly a year after agreeing to buy it from Japan's Daiichi Sankyo Co.

"Post the completion of the merger, we have commenced the integration of Ranbaxy. Our performance has been impacted due to various one-time charges, mainly on account of the Ranbaxy merger as well as due to price erosion for some of our products in the US. It also reflects the impact of supply constraints related to the on-going remediation efforts at some of our facilities. We are pledged to being 100% cGMP compliant and are fully responsible towards our customers and patients across the world who rely on us for quality products,”  Dilip Shanghvi, Managing Director of the Company said in a filing to the BSE. 

The stock opened at Rs 916, touched a low of Rs 888 on the BSE. At 9.45 AM, a total of 326,516 shares changed hands on the BSE so far.