Mumbai: Taro Pharmaceutical Industries Ltd, the Israel-based subsidiary unit of Sun Pharmaceutical Industries Ltd, has posted a 26% increase in net profit for the October-December quarter.
Taro, which announced its third-quarter earnings on Monday, said its net profit rose to $87 million from $69 million in the corresponding year-earlier period. Sales grew 25.4% to $186 million boosted by an increase in prices of some products in the US.
Sun Pharma holds a 66% stake in Taro. The Israel-based unit contributed about 32% of Sun Pharma’s revenue in fiscal 2012.
Taro, in a late Monday statement, said price increases helped improve revenue and profit as there was actually a drop in volumes in the December quarter.
“Taro’s excellent performance will greatly reflect in Sun Pharma results, which is expected to post an increase of at least 25% in the third-quarter profits,” said an industry analyst with a foreign brokerage, declining to be named.
Sun’s shares were trading 4% higher at Rs.747.90 each on BSE in late morning trade, while the Sensex was down 0.30% at 19,691.25 points.