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Last Updated : Nov 10, 2016 04:43 PM IST | Source: CNBC-TV18

Sun Pharma Q2 show healthy but margins unsustainable: Nangra

Healthcare major Sun Pharmaceutical Industries' Profit more than doubled to Rs 2,235.1 crore in the quarter ended September 2016 compared with Rs 1,028.8 crore in year-ago period, driven by overall healthy business performance.


Reacting to Sun Pharma second quarter numbers, Sarabjit Kaur Nangra, VP  Research Pharma, Angel Broking said they were a healthy set of numbers after a long time.

Healthcare major Sun Pharmaceutical Industries' quarterly earnings beat analysts' expectations on Thursday. Profit more than doubled to Rs 2,235.1 crore in the quarter ended September 2016 compared with Rs 1,028.8 crore in year-ago period, driven by overall healthy business performance.


Revenue during the quarter grew by 20.2 percent to Rs 8,265.1 crore compared with Rs 6,873.3 crore in same quarter last fiscal.


The revenue growth could have been because of US doing better than expected. The key drugs that they launched in the quarter must have given them the breakthrough in terms of growth and margin.

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EBITDA (earnings before interest, tax, depreciation and amortisation) shot up 69.1 percent year-on-year to Rs 3,167.7 crore and margin expanded sharply by 1110 basis points to 38.3 percent in Q2, which were far ahead of estimates of Rs 2,487 crore and 32 percent, respectively.

However, Nangra does not expect these margins to sustain at these levels going forward.

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First Published on Nov 10, 2016 04:42 pm
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