Sun Pharma Q3 Result: Earnings meet estimates led by Specialty business, India grows in single digits

On the operating front, the company's operating profit and EBITDA margin were also in-line with expectations. EBITDA margin increased 30 basis points from last year, while the street was working with a growth of 50 basis points.

The company has managed to largely maintain its financials despite weak results from its US-unit Taro Pharma.

Taro Pharma lost nearly all of its operating profit during the December quarter as it continued to experience pricing pressure, particularly in the US generics business.

While revenue and operating profit were higher on a sequential basis as well, Sun Pharma's net profit and EBITDA margin saw a marginal decline when compared to the September quarter.

Sun Pharma's US business, which contributes to nearly a third of the overall revenue, saw growth of 6.3 percent year-on-year to $422 million during the quarter. On a sequential basis, US business sales were flat.

The company's India business, which was expected to grow between 8-10 percent during the quarter, saw growth of 7.1 percent.

The board has also declared an interim dividend of Rs 7.5 per share.

Managing Director Dilip Shanghvi said that the company is investing to scale up the specialty business, which is likely to be the key growth driver for the company. He further added that the company will be well-positioned to bring Concert Pharma's lead asset deuroxolitinib to the market.

Sun Pharma acquired Concert Pharma for $576 million this month.

Shares of Sun Pharma are down to the day's low, declining 2.1 percent to Rs 1,030, post the earnings announcement.