Views on Sun Pharma 3QFY2014 results - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP - Research - Pharma, Angel Broking) on Sun Pharma 3QFY2014 results:

"Sun Pharma for 3QFY2014, posted results much ahead of expectations. The sales came in at Rs. 4287cr V/s Rs. 3700cr expected, posting a yoy growth of 50.3%. The growth was primarily lead by the led by exports, which rose by 61% yoy, while domestic formulations grew by robust 20.0%. The key region, that drove, the exports growth was US, which posted growth of 79.2% yoy and a growth of 57% yoy in US $ terms. On the profitability front, the Gross margins expanded by 136bps to end the period at 81.7%, which aided the OPM's to come in at 46.1% V/s 44.2% in 3QFY2013, higher than the 42.1% expected. Also, a higher other income during the period aided the net profit come in at Rs. 1531cr V/s expected Rs. 1054cr, a yoy growth of 73.7%. We remain neutral on the stock."

Source : Equity Bulls

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