Sun Pharma surges on re-inspection of Halol plant

Sun Pharmaceutical Industries (SPIL) came into focus on Friday as USFDA began its inspection of the company's Halol manufacturing facility. This inspection is the most crucial for the company. Its Halol site produces a range of products from tablets to nasal sprays to injectables and contributes over 15 per cent of SPIL’s revenues in the US.

Last December, SPIL received a warning letter from the US drug regulatory agency. The action followed over 20 observations that were detected in 2014 as part of USFDA's routine inspections. 

As per SPIL’s management, the company had maintained that the remedial exercise at the site has been completed. As per media reports, the USFDA has been requested for a re-inspection.

On the financial front, SPIL’s topline increased 8.06 per cent to Rs 2029 crore in Q2FY17 as compared to the same period in previous fiscal. The company posted EBITDA of Rs 298 crore in Q2FY17 as against EBITDA loss of Rs 295 crore in Q2FY16. It posted net profit of Rs 185 crore in Q2FY17 as against net loss of Rs 600 crore in Q2FY16.

The share price of SPIL increased 3.12 per cent on the bourses in early trades and is trading at Rs 687.25 on intraday basis.