Sun Pharmaceutical Industries dropped 2.86% to Rs 438.40 at 9:30 IST on BSE after consolidated adjusted net profit excluding the Modafinil settlement fell 74% at Rs 526 crore on 23% decline in sales to Rs 6167 crore in Q1 June 2017 over Q1 June 2016
The announcement was made after market hours on Friday, 11 August 2017.Meanwhile, the S&P BSE Sensex was up 128.04 points or 0.46% at 31,356.01.
On the BSE, 76,000 shares were traded on the counter so far as against the average daily volumes of 5.54 lakh shares in the past one quarter. The stock had hit a low of Rs 433.15 so far during the day, which is also a 52-week low. The stock had hit a high of Rs 446 so far during the day. The stock had hit a 52-week high of Rs 833 on 10 August 2016.
The stock has dropped 18% in nine sessions to its current price, from a close of Rs 534.65 on 1 August 2017.
The stock had underperformed the market over the past one month till 11 August 2017, sliding 19.95% compared with the Sensex's 1.68% decline. The stock had also underperformed the market over the past one quarter, declining 30.39% as against the Sensex's 3.18% rise. The scrip had also underperformed the market over the past one year, declining 44.21% as against the Sensex's 12.04% rise.
The large-cap company has equity capital of Rs 239.93 crore. Face value per share is Re 1.
Net profit for Q1 June 2017 was adversely impacted by settlements with certain plaintiffs related to the Modafinil antitrust litigation in the US, with the settlement amounting to Rs 950 crore. Net profit for Q1 June 2016 included the benefit of the 180-day exclusivity for Imatinib which expired in July-2016.
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Dilip Shanghvi, Managing Director of the company said that Q1 performance was not good and not in line with the past performance due to the combined impact of increasing investments in global specialty business, temporary disruption in India business due to GST implementation, a challenging US generic pricing environment and the Modafinil settlement. The company expects performance to gradually improve in the second half of this year.
Separately, company said that all the necessary formalities for completion of acquisition of 2.03 lakh series A preferred stock-equivalent to 15.91% fully diluted equity stake on conversion, of Krystal Biotech Inc., have now been concluded. On 8 August 2017, the company had disclosed regarding agreement of said acquisition of Krystal Biotech Inc., United States of America.
Sun Pharmaceutical Industries is a specialty generic pharmaceutical company and India's top pharmaceutical company.
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