The present invention relates to compositions comprising saroglitazar magnesium wherein the saroglitazar magnesium has a purity of greater than or equal to 99% by weight, and dimer compound of Formula (IV) present in an amount relative to saroglitazar magnesium less than about 0.3% by weight by area percentage of HPLC. The present invention also related to the process for the preparation thereof and pharmaceutical compositions comprising the same.