Sun Pharmaceutical Industries Expands Profit after Quarter 2 (Q2) Earnings, Shares Upsurge over 6 per cent
On Wednesday, the shares of Sun Pharmaceutical Industries continued their rally for the second continuous day, rising over 6 per cent, after the firm reported a 70% surge in its amalgamated net income for the quarter ended on 30 September 2020.
Sun Pharmaceutical Industries Limited (Sun Pharma) that produces and sells pharmaceutical formulations and active pharmaceutical ingredients whose stock on Wednesday, stood up 6.31 per cent to Rs.516.85 on the BSE and at the NSE, it earned 6.23 per cent to Rs.515.90.
However, on Tuesday, the company reported a 70.36 per cent rise in its consolidated net income at Rs.1, 812.79 crore, mainly on account of robust sales and exceptional tax gains whereas the shares of the organization had earned close to 4 per cent.
Besides, the Sun Pharma had also posted a net profit of Rs.1, 064.09 crore for the corresponding period of the preceding fiscal and the consolidated revenue from operations stood at Rs.8, 553.13 crore for the quarter under consideration against Rs.8, 123.35 crore for the same period a year ago.
The company said in a regulatory filing that the ‘Tax gain for the quarter ended 30 September 2020, is on account of the creation of deferred tax asset amounting to Rs.288.28 crore commencing out of successive measurement attributable to restructuring of an acquired entity.
Moreover, the quarterly profit rose 71 per cent and surpasses estimates as betterment in hospital visits and medicine prescriptions helped India’s biggest drug manufacturer recover from the surprise loss in the earlier quarter.
Lastly, the inversion comes after Sun Pharma’s subsidiary Taro Pharmaceutical Industries Limited accepted to pay almost $480 million in July to settle drug-price fixing representations in the United States and it comprises criminal charges that the firm conspired with competitors to rig the prices of generic drugs between 2013 and 2015.