Sun Pharma shares slump to over 4-year low on Q1 loss amid huge volumes

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Updated: August 14, 2017 11:19:44 AM

Shares of Sun Pharmaceutical Industries fell as much as 3.8% to 432.7 rupees after the drugmaker has posted a loss of Rs 424.92 crore for the April-June quarter of FY 2018.

The company had posted a net profit after taxes of Rs 2,033.71 crore for the same period in the previous year. (Image: Reuters)

Shares of Sun Pharmaceutical Industries fell as much as 3.8% to 432.7 rupees after the drugmaker has posted a loss of Rs 424.92 crore for the April-June quarter of FY 2018. The stock of Sun Pharma fell to its lowest since April 2013. The company said the surprise loss came in the way mainly due to a one-time exceptional item. The company had posted a net profit after taxes of Rs 2,033.71 crore for the same period in the previous year. Up till 11:15 am around 117 lakh shares have exchanged hands on NSE.

Consolidated total revenue from operations of the company stood at Rs 6,208.79 crore for the quarter under consideration as against Rs 8,256.26 crore for the corresponding period of the previous fiscal, it added. The company and one of its wholly owned subsidiaries entered into settlements with certain plaintiffs in respect of an antitrust litigation relating to Modafinil in the month of July 2017, whereby the company agreed to pay an aggregate amount of $147 million, Sun Pharma said.

The US sales of the drugmaker have slipped 42% while India sales dipped 5% only. After the dent in Q1 figures, out of 37 analysts covering the stock, 18 have a “buy” or higher rating, 12 “hold” while the rest have rated it “sell” or lower. Global research and brokerage firm CLSA expect the company’s US sales to remain under pressure.

Indian market opened higher on Monday ahead of the macroeconomic data scheduled for today and tracking the other Asian stocks which bounced in early trade today after three losing sessions, as Wall Street ended marginally higher on Friday. This week the domestic markets will witness the release of wholesale inflation figures, corporate earnings effect, ongoing geopolitical worries between the United States and North Korea and further developments in the SEBI’s shell order if any.

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