Technology

For 4QFY2017, Sun Pharma posted tepid numbers. For the quarter, the sales came in at `6,825cr v/s. `7,600cr expected, registering a yoy dip of 7.9%. India sales at `1,916cr, were up by 10% as compared to 4QFY2016, US finished dosage sales at US$381mn down by 34% vis-à-vis 4QFY2016. On the OPM front, the gross margins came in at 67.8% v/s. 80.4% in 4QFY2016, which lead the EBDITA margins to come in at 18.1% (v/s. 31.1% expected) v/s. 31.0% in 4QFY2016. Despite the sharp dip in margins, the higher other income at `536cr v/s. `185cr in 4QFY2016, lead the Adj. net profit to come in at `1,385cr v/s. `1,433cr expected, a yoy dip of 19.2%. We maintain our Buy.

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