Shares of Sun Pharmaceutical Industries tumbled 11 per cent today after the company’s fourth quarter earnings came below market expectations.
The stock plunged 11 per cent to Rs 869.50 on the BSE.
At the NSE, it dipped 10 per cent to Rs 869.10.
The stock was the biggest loser among the Sensex and Nifty scrips.
“For Q4 FY15, Sun Pharmaceuticals posted numbers lower-than-expected,” said Sarabjit Kour Nangra, VP Research – Pharma of Angel Broking.
Sun Pharmaceutical Industries on Friday posted a consolidated net profit of Rs 888.05 crore for the fourth quarter ended March 31, mainly due to Ranbaxy merger impact and price erosion in some products in the US.
The company had posted a net profit of Rs 1,587.12 crore for the same period of the previous fiscal.
Net profit was adversely impacted by professional charges, harmonisation of policies of erstwhile Ranbaxy with the company, Sun Pharma said in a statement.
“The impact of these items appearing above Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) was approximately 10 per cent of net sales and on items appearing below EBITDA was around 7 per cent of net sales,” it said.
The financials for fourth quarter of 2014-15 and full year include the impact of the merger of Ranbaxy into Sun Pharma, and hence are not strictly comparable with the same period last year, the company had said.
For Updates Check Market News; follow us on Facebook and Twitter