Sun Pharmaceuticals reported a 31.2% y-o-y jump in net profit for the quarter ended June at Rs. 1,338 crore even as its margins took a hit. The revenue of the largest Indian drug manufacturing company came in at Rs. 8,374 crore, an increase of 15.9% over the last year.
Notably, the country's pharma sector too is reeling under slowdown and registered slowest growth in 5 years time in the quarter ended June. Also, pharmaceutical companies such as Sun Pharma which primarily sell their generic drugs in the US face intense competition and pricing pressure, forcing them to cut down on prices and hence settle for lower profitability.
EBITDA of the company climbed 13.7% to Rs. 1696 crore while its operating margin narrowed down to 23%, with a decline of 50 basis point of 0.5%.
Shares of Sun Pharma closed 3.71% higher at Rs. 437.55 despite a 1.66% fall in the benchmark Sensex.