SPARC back in the black in Q1, reports profit of Rs 57 cr; stock jumps 14%

Topics Buzzing stocks | SPARC | Sun Pharma

SPARC's sister firm, Sun Pharma, too, was trading 1 per cent higher at Rs 534 apiece on the BSE
Shares of SPARC (Sun Pharma Advanced Research Company) zoomed 14.5 per cent to Rs 200 apiece on the BSE on Wednesday after the company declared healthy June quarter results on Tuesday, post market hours. At 9:34 am, the stock was ruling 10.6 per cent higher at Rs 193.2 on the BSE, as against 343 points, or 0.9 per cent, rally in the benchmark S&P BSE Sensex.

The company's net profit in Q1FY21 came in at Rs 56.69 crore, compared with a loss of Rs 94.19 crore in the year-ago quarter. It's EBITDA stood at Rs 60.78 crore, as against a negative EBITDA of Rs 95.02 crore posted in Q1FY20. Besides, EBITDA margin at 32.77 per cent, soaring 581.38 per cent YoY.

It's revenue from operations for the quarter under review came in at Rs 185.45 crore, clocking a growth of 970.73 per cent YoY from Rs17.32 crore reported in Q1FY20.

"Since the beginning of 2020 until now, the global wide spread of Covid–19 is a fluid and challenging situation facing all the industries. The Company has taken all possible effective measures to limit and keep the impact of Covid-19 under control in order to ensure business continuity with minimal disruption. The Company, as per business plans, is in the process of evaluating various sources of raising funds for its operations. The Company has also received a financial support letter from its parent Company which is valid till time the Company is able to raise funds from external sources. The Company will continue to pay close attention to the development of Covid–19, and will further evaluate and actively respond to such impact on the financial position and financial performance of the Company," it said in a statement.

SPARC's sister firm, Sun Pharma, too, was trading 1 per cent higher at Rs 534 apiece on the BSE. It hit an intra-day high of Rs 538 per share. For the June quarter, Sun Pharma had posted a surprise consolidated loss of Rs 1,655.60 crore due to exceptional items of Rs 3,633.33 crore. It's profit was Rs 1,387.48 crore in the year-ago period.

"The exceptional items include unit Taro’s payment of $213.3 million (Rs 1,617.96 crore) to resolve all claims related to federal healthcare programs, as it resolved all matters with Department of Justice (DoJ), and unit Dusa’s settlement with DoJ to the tune of Rs 156.36 crore," it said in a statement. 

It also said Taro has made certain provisions amounting to $60 million(Rs 455.19 crore) for related ongoing multi-jurisdiction civil antitrust matters, and added the ultimate outcome of the antitrust matters cannot be predicted with certainty.

The company’s revenues from operations stood at Rs 7,467.19 crore, down from Rs 8,259.30 crore a year ago.
      


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel