Sun Pharma hits new high as Q1 profit beats estimates

The stock hit new high of Rs 801 on NSE after reporting a better-than-expected profit of Rs 1,391 crore in June 2014 quarter.

Sun Pharmaceutical Industries has moved higher by 2% to Rs 801, also its new lifetime high on NSE, after reporting a better-than-expected consolidated net profit at Rs 1,391 crore for the first quarter ended June 2014 (Q1), on back of higher sales. The country’s largest drug maker by market value had loss of Rs 1,276 crore in the same quarter year ago.

The loss in Q1 last year was on account of a provision of Rs 2,517 crores towards settlement for patent infringement litigation related to generic versions of ‘Protonix’.

Analysts on average had expected a profit of Rs 1,330 crore for the quarter.

Net sales rose 12% to Rs 3,927 crore, while sales in the United States, from where the company makes more than half its revenue, advanced 7%.

EBITDA or operating profit at Rs 1,724 crore grew by 13%; resulting EBITDA margin of 44%, same as Q1 last year, Sun Pharma said in a statement.

The stock opened at Rs 778 and has seen a combined 1.9 million shares changing hands on the counter so far on NSE and BSE.