Sun Pharma boosted by Taro Q4, shares rise
DLF on Friday last week reported 45 per cent decline in consolidated profit after tax at Rs 258 crore for the third quarter ended December, on account of lower than expected sales.
Sun Pharma was among the top gainers on the 50-stock Nifty index Monday. The company will report its third quarter earnings later today.
Shares of the company surged 2.7% to Rs 556 in early trade before witnessing some profit booking. At 1000 hours, it traded 1.76% higher at Rs 551. The Sensex was down 50 points or 0.28%.
Investors were bullish on the counter after its subsidiary Taro Pharma reported strong numbers for the fourth quarter. Net sales rose to $148.1 million, up 44.3% year-on-year. Gross profit, as a percentage of net sales, rose to 71.6%, compared to 59.6% (YoY). Operating margins grew at 50.3% against 21% (YoY).
Here's what is expected from Sun Pharma's third quarter:
Sales estimated at Rs 1,774 crore against Rs 1,601.1crore (up 10.8% YoY)
Adjusted profit after tax (PAT) estimated at Rs 478.4crore against Rs 306.7 crore (up 56% YoY)
Earnings before income, tax, depreciation and amortization (EBITDA) margins grew at 34.7% against 27.5% (YoY)
Core EBITDA is likely to grow 61.8% YoY to Rs.610cr
Domestic formulation business is likely to grow 9.8% at Rs 703 crore
Export formulations business other than US is likely to grow 24.4%