Earnings upgrades ahead for Sun Pharmaceutical, stock gains nearly 7%

US growth at 8%, despite declining Taro sales, giving confidence that the firm is on a recovery path in America

Sun Pharmaceutical Industries beat the Street estimates with Rs 9.83 billion net profit in the June 2018 quarter, driven by growth in key geographies of India and the US and lower drug development costs. This was better than the consensus estimates of Rs 9.11 billion. In same quarter last financial year, the company had posted a loss of Rs 4.24 billion due to an exceptional item related to a litigation settlement. Adjusted for this, the company posted 83 per cent year-on-year (y-o-y) growth in the quarter. The Street gave a thumbs up with the stock ending nearly 7 per cent