Mumbai: India's largest drug maker Sun Pharma on Wednesday posted a net loss of Rs 219 crore as the company said it is making a provision for a possible settlement in an anti trust case. Sun Pharma posted a total income of Rs 6846 crore, a 4 percent growth over the same quarter last year. The adjusted net profit for the company was reported at Rs 996 crore, after accounting for a provision of Rs 1214 crore for a possible settlement related to a Modafinil anti trust litigation. The company had made a similar provision in June 2017 to the tune of Rs 950 crore.
Dilip Shanghvi, MD of Sun Pharma however said that the company's below estimates results are just temporary. “Our soft Q2 performance is not a reflection of the underlying health of the overall business. We continue to focus on strengthening our core operations and enhancing our overall efficiencies. We are fairly positive on our performance for the rest of the year. We are excited with the successful launch of Ilumya in the US." Shanghvi said.
Sun's India business fell by 16%, on account of a planned one-time inventory reduction in the supply chain, and a high base of Q2 last year. The total sales from India was reported at Rs 1860 crore. US business, however showed a sign of revival with a 11% increase in revenues to Rs 342 million. The company's earnings before interest, depreciation and taxes were at Rs 1440 crores, resulting in a 21% margin.
The markets however were not impressed with Sun's results. The stock tanked by 5% during Wednesday's trading hours, closing at Rs 561.