Sun Pharma Share Price: Stock rises despite US unit Taro reporting an operating loss

For the quarter, Taro's net sales rose by 1.4 percent from last year to $158.9 million. The sales figures are also higher when compared to the March quarter.

The exceptional item also led to sales and other administrative expenses rising to $55.9 million. Net profit for the period also fell to $10 million from $14 million last year. The net profit declined despite a tax benefit of $4.6 million during the current quarter. The company faced a tax expense of $2 million in the base quarter. The bottomline was also aided by a foreign exchange income of $2.1 million, compared to a forex expenditure of $0.3 million in the prior quarter.

Brokerage firm Elara called Taro's numbers "exceptionally poor" and that the US unit contributes 4-5 percent of June quarter and full-year operating profit or EBITDA estimates for Sun Pharma. A miss by Taro translates into a 4-5 percent miss on consolidated EBITDA estimates for Sun Pharma's June quarter, according to Elara.

Shares of Taro Pharma had ended 0.4 percent lower overnight, while those of Sun Pharma are trading 1.1 percent higher at Rs 1,124.80.