Sanofi India rallies over 5% as Q4 net profit surges two-fold

NEW DELHI: Sanofi India Ltd rallied as much as 5.2 per cent in trade on Wednesday after the dug firm posted over two-fold increase in its net profit at Rs 92.7 crore for the fourth quarter ended December 31, 2013 on account of robust sales in export markets.

The company had posted a net profit of Rs 44.8 crore during the same period of previous fiscal, Sanofi India said in a filing to the BSE.

At 09:40 a.m.; Sanofi India pared some of the morning gains and was trading 1.7 per cent higher at Rs 2686.90. It hit a low of Rs 2652.15 and a high of Rs 2779 in trade today.

The company which follows a January-December financial year has recommended a final dividend of Rs 35 per equity share of Rs 10 for the year ended December 31, 2013.

“Sanofi India posted numbers better than estimates. Its total sales came in at Rs 461 cr as compared to Rs 440 cr expected a growth of 15 per cent,” Angel Broking said in a note.

The main surprise came in at operating front. The OPM’s came in at 18.8 per cent (12.5% expected) an expansion of 615 bps YoY, mainly on back of the low rise in the employee and other expenses, which rose by 2.6 per cent and 4 per cent respectively, added the report.

The brokerage firm has a ‘neutral’ rating on the stock.