Sun Pharma shares slip 5% on bleak sales outlook

Stock of Sun Pharma was the top loser on both the bourses and lost over 6 per cent intraday after the pharma major issued a weaker-than expected annual sales outlook as it grapples with increased competition in the United States as well as supply constraints.

The stock hit an intraday low of Rs 757.10, down 6.81 per cent on the Bombay Stock Exchange and settled the day 6.13 per cent lower.

The world fifth-largest generic drugs maker said it expects sales to climb between 8 and 10 percent this financial year, below an average analysts' estimate of a 20 percent rise.

Chief Executive Dilip Shanghvi also said on a conference call with analysts that profit would be hurt in the near term as Sun Pharma spends heavily on building up its specialty drugs business in the United States, its largest market.

The downbeat forecasts came after the pharma major reported a consolidated net profit of Rs 1,713.69 crore for the fourth quarter ended March 31, 2016.

The company had posted a net profit of Rs 889.24 crore for the same period of the previous quarter, Sun Pharmaceutical Industries said in a filing to the BSE.

(With inputs from agencies)