Investors pummel Sun Pharma, shares tank 16% after profit warning

Shares of pharmaceutical company Sun Pharmaceutical Industries tanked nearly 16 percent in early trade Tuesday, after the company on Monday warned that the measures undertaken to integrate Ranbaxy have a bearing on its revenues and profits in the current financial year. In a statement issued to the BSE on Monday, Sun Pharma said it expects its consolidated revenues to remain flat or show a decline compared with the last financial year. [caption id=“attachment_2159087” align=“alignleft” width=“380”]  Reuters[/caption] In addition to the revenue impact, Sun also sees strain on its profits in the wake of certain expenses or charges arising out of integration as well as remedial actions, the company said in a conference call with analysts. However, the company has indicated that the above initiatives will help it revert to a more sustainable growth trajectory post FY16. For the full year ending 2014-15, Sun Pharma had reported consolidated net sales of Rs 27,286 crore on total net profit of Rs 4,541 crore At 10.15 am, Sun Pharmaceutical stock was traded at Rs 830, down 12.3 percent from previous close. Earlier, the stock slipped to a low of Rs 799, down 15.6 percent. The BSE Healthcare index emerged the top sectoral loser, tumbling 3.6 percent to 17,255, as Sun Pharma has the highest weightage in the index. Nearly 16 lakh shares changed hands on the BSE as against the two-week average volume of just 1.8 lakh shares.