Why Sun Pharma jumped 9% after posting Rs 1276 crore loss

Sun Pharmaceutical shares jumped as much as 9 per cent on Monday even though India's top drugmaker by market value reported a net loss of Rs 1,276 crore for the June quarter.

Sun Pharma, which had reported earnings after markets closed on Friday, attributed losses to a provision for settling a patent suit. Sun Pharma, along with Teva Pharmaceuticals, has to pay Pfizer Inc $2.15 billion to settle a patent suit related to marketing generic versions of its acid-reflux drug Protonix.

Adjusted for provisions, profits rose 56 per cent year-on-year to Rs 1,241 crore against Rs 795 crore. Sales jumped 31 per cent to Rs 3,482 crore for the first quarter ended June 30.

The strong growth in sales was led by U.S. business, analysts said. The company reaffirmed its annual guidance of 18-20 per cent sales growth in FY14.

EBITDA margins, a key measure of profitability, stood at 44 per cent as against 45.8 per cent in the corresponding quarter last year.

Sun Pharma, the top gainer on the 50-share Nifty, traded 6.7 per cent higher at Rs 539.50 as of 09.31 a.m. The stock had earlier hit a high of Rs 551.30. (Track stock)


(With inputs from Reuters)