A Day After Q4 Earnings, Sun Pharma Shares Decline Over 4 Per Cent

The stock of the company fell 4.12 per cent to Rs 851.50 on the BSE, while on NSE, it tumbled 4.17 per cent to Rs 851.20 apiece

By : ABP News Bureau | Updated at : 31 May 2022 02:02 PM (IST)

A Day After Q4 Earnings, Sun Pharma Shares Decline Over 4 Per Cent A Day After Q4 Earnings, Sun Pharma Shares Decline Over 4 Per Cent

Sun Pharma posted a consolidated net loss at Rs 2,277 crore for the fourth quarter ended March 2022, mainly on account of a one-time exceptional loss.

Source : Getty

New Delhi: Shares of Sun Pharmaceutical Industries dropped by over 4 per cent in morning trade on Tuesday.

On Monday, the pharma firm posted a consolidated net loss at Rs 2,277 crore for the fourth quarter ended March 2022, mainly on account of a one-time exceptional loss.

The stock of the company fell 4.12 per cent to Rs 851.50 on the BSE, while on NSE, it tumbled 4.17 per cent to Rs 851.20 apiece.

At 9:45 am, Sun Pharmaceutical Industries was quoting at Rs 881.05, down Rs 7.05, or 0.79 percent. It has touched an intraday high of Rs 882.80 and an intraday low of Rs 857.10.

ALSO READ | Stock Market: Sensex Slips 366 Points, Nifty Holds 16,500; IT Stocks Worst Hit

Sun Pharma’s consolidated sales from operations stood at Rs 9,386 crore in the fourth quarter. Exceptional items for the quarter stood at Rs 3,935.75 crore against Rs 672.81 crore last year. Exceptional items include settlements, and provisions related to Taro Pharmaceuticals, and Ranbaxy.

Sun Pharma’s sales in the US, which accounted for 31 per cent of the total sales, rose 5 per cent on-year to $389 million. The drug maker’s sales in India were up 16 per cent at Rs 3,095.60 crore, while sales in emerging markets grew 7 per cent to $206 million in the quarter under review.

During the quarter, Taro posted sales of $143 million, down 3 per cent year-on-year, and a net profit of about $27.4 million, down 11.6 per cent.

According to news reports, CLSA has a 'buy' call on the stock with target at Rs 1,080 per share, an upside of 22 per cent from current market price.

"FY23 revenue guidance was in-line with expectations led by specialty ramp-up. Normalisation of expenses and higher input costs impact profitability. Strong India performance but most other geographies undershot expectations. Raise FY23-24 earnings estimates by 2-3 per cent," it said.

At 2 pm, the stock of the company was trading at Rs 859.45, down 3.23 per cent on the BSE.