InvestorQ : How do you see the Sun Pharma stock after the recent 31% fall in net profits in the quarter?
Dawn Cherian made post

How do you see the Sun Pharma stock after the recent 31% fall in net profits in the quarter?

Answer
user profile image
Dilmini Mercia answered.
5 months ago


Sun Pharma reported 37% fall in net profits at Rs.399 crore but that was largely driven by a one-time exceptional loss of Rs.260 crore pertaining to interest on refund claims and settlement with the US Department of Justice. Total revenues for the Mar-20 quarter were up 14.3% at Rs.8185 crore, way better than analyst estimates. The performance of Sun Pharma on the operational front was a lot more flattering as EBITDA grew by 34% to Rs.1363 crore. EBITDA margins were up by 250 bps to 16.7% in the Marr-20 quarter. For the fiscal year 2019-20, net profits were up by 41.3% at Rs.3765 crore while revenues were up by 13% at Rs.32,838. The markets should read these numbers positively.