Post Q1, Sun Pharma Share Price Still in its Blues

Sun Pharmaceutical Industries, the Healthcare major, could meet the analysts' expectations, as consolidated profit in April-June quarter zoomed up 266 percent Y-o-Y to Rs 2,034 crore. The growth happened owing to the top-line and operational performance despite sharp rise in tax cost. The swell in bottom-line was also because of low base in year-ago period. The company had disclosed an unusual loss of Rs 685.2 crore in Q1FY16 considering the integration and optimization measures post Ranbaxy acquisition. Sun Pharma reviewed its profit figure for Q1FY16 to Rs 556 crore from Rs 479 crore earlier as a result of news accounting standards. Total income from operations shot 22 percent to Rs 8,243 crore in the June 2016 quarter end against Rs 6,761 crore in the corresponding period last year. Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) as seen in this the quarter saw a growth of 65.2 percent to Rs 2,921 crore and margin expanded by 930 basis points to 35.4 percent Y-o-Y.  Profit was estimated at Rs 1,894 crore on revenue of Rs 7,877 crore for this quarter. Expectations for operating profit and margin read at Rs 2,560 crore and 32.5 percent, respectively. Tax expenses rose three-fold to Rs 352.7 crore from Rs 112.7 crore on Y-o-Y basis.

At 9:57 hours IST, this morning, Sun Pharma share price was quoting at Rs781.65, down 0.13 percent on NSE. The stock saw a apurt in volume by more than 1.57 times.