Cipla profit declines 20% to ₹322 cr in December quarter
NEWDELHI: Drug major Cipla Ltd on Wednesday reported a 20% dip in consolidated net profit to ₹322.24 crore for the December 2018 quarter, mainly on account of higher tax expenses.
The company had posted a net profit of ₹403.45 crore for the corresponding period of the previous fiscal, Cipla said in a BSE filing.
Twenty analysts had expected the generic drugmaker to post a profit of ₹372 crore, according to Refinitiv Eikon data.
Consolidated total revenue from operations of the company stood at ₹4,007.54 crore for the quarter, c o mpa r e d wi t h ₹3,913.82 crore for the same period year ago.
“Overall, challenges in this quarter were along expected lines and we remain optimistic as we enter fiscal year 2020. Our plan t o drive year- on- year growth from the coming quarters in on track,” said Cipla managing director and global chief executive officer (CEO) Umang Vohra.
This quarter, t he United States business has delivered strongly, as a result of scale-up of new launches.
The company is tracking well on its guidance on limited competition launches and abbrevi- at ed new drug applicati on ( ANDA) approvals, Vohra added.
India sales, which accounted f or nearly 40% of t he t otal, declined 1% to ₹1,585 crore, Cipla said.
North America sales surged 31% to ₹849 crore.
“Our key f ocus markets remain growth anchors, we have built further on our existing specialty pipeline, and we continue to explore innovative ways of going beyond the pill to meet unmet patient needs,” Vohra said.
The t ax expenses f or t he quarter stood at ₹125.68 crore.
It had a tax benefit of ₹64.23 crore in the year-ago period.
Cipla, in its last quarterly earnings in November, had warned of headwinds in the second half of the financial year.
The upcoming challenges include capacity balancing in certain categories at plants, sanctions, higher crude and commodity prices, Cipla had stated earlier.
Shares of Cipla Ltd were trading at ₹527.95 per scrip on the BSE, up 3.75% from the previous close.