Sun Pharma's shareholders not disadvantaged in transactions with Aditya Medisales

Drug major Sun Pharmaceutical Industries has said its shareholders were not disadvantaged in transactions with Aditya Medisales and the company has responded to queries from market regulator Sebi. Aditya Medisales has been the domestic distributor of the drug major but the company has said it would be replaced by a subsidiary of Sun Pharma.

Aditya Medisales is reported to have had transactions of over Rs 5,800 crore with a real estate firm, Suraksha Realty that is promoted by Sudhir Valia, who is the brother-in-law of Sun Pharma promoter Dilip Sanghvi. Valia is also an executive director in the pharmaceutical major. "I would like to reassure investors that at no point of time Sun Pharma's shareholders have been disadvantaged in transactions with Aditya Medisales," Sun Pharma MD Dilip Shanghvi said while addressing the conference call Tuesday.

Shanghvi was responding to the concern raised by some investors whether Aditya Medisales has benefited in the past at the cost of Sun Pharma's minority shareholders. He further said, Sun Pharma has responded to two queries raised by market regulator Sebi regarding the 2004 foreign currency convertible bond (FCCB) issuance by the company and transactions with Aditya Medisales.

On the response by the company to the queries raised by Securities and Exchange Board of India (Sebi), Shanghvi said: "While we do not have access to the whistleblower documents, we have received information request from SEBI related to our 2004 FCCB issuance and also for our transactions with Aditya Medisales. "We have responded to these queries. Beyond this we do not have any update to share." Sun Pharmaceutical Industries has reported nearly four-fold jump in its consolidated net profit at Rs 1,241.85 crore for the quarter ended on December 31, 2018. The company had posted a net profit of Rs 321.57 crore for the corresponding period of the previous fiscal hit by one-time deferred tax adjustment.

"Net profit for Q3 FY19 was at Rs 1,242 crore with resulting net profit margin at 16.2 per cent. Net profit for third quarter last year was adversely impacted by one-time deferred tax adjustment of Rs 513 crore related to changes in US tax rates. Adjusted for this, net profit growth for Q3 FY19 was 49 per cent year-on-year," the company said. Consolidated revenue from operations of the company stood at Rs 7,740.19 crore for the quarter under consideration as against Rs 6,653.23 crore for the same period a year ago.Shares of Sun Pharmaceutical Industries were trading at Rs 440.50 per scrip on BSE, up 0.86 per cent from its previous close.

(With inputs from agencies.)