Sun Pharma down as Taro Q4 margins decline

Shares of Sun Pharma were down 2.7% at Rs 979 after its oversubsidiary Taro Pharmaceutical reported lower-than-expected operating profit margin for the fourth quarter ended March 31, 2013.

For the fourth quarter, net sales for the quarter increased 13.8% to $165.1 million from $145.1 million and net profit has inched up 4.2% to $49.2 million from $47.2 million.

However, operating income declined to $63.1 million, or 38.2% of net sales, compared to $66.2 million, or 45.6% of net sales, Taro said in a release.

Meanwhile, technical analysts said that investors are booking profits after the stock gained nearly 9% in the past few sessions.

Over 380,000 shares of the pharma company were traded on both the stock exchanges so far.