Ci­pla slips up

The Hindu Business Line - - STOCK CALLS -

Ci­pla re­ported a 17 per cent Y-o-Y de­cline in its con­sol­i­dated net profit in the De­cem­ber quar­ter to ₹332 crore. Higher tax ex­penses, cou­pled with the mod­est show in its key do­mes­tic mar­ket im­pacted the fi­nan­cials. The sil­ver lin­ing was its US op­er­a­tions, which de­liv­ered im­proved sales, record­ing se­quen­tial growth for the sec­ond con­sec­u­tive quar­ter. The con­sol­i­dated rev­enue came in at ₹4,008 crore, up 2 per cent Y-o-Y. T

ax ex­penses for the quar­ter stood at ₹126 crore; the com­pany had a tax credit of ₹64 crore in the same quar­ter last fis­cal. Sales from In­dia de­clined by one per cent Y-o-Y to ₹1,585 crore mainly due to high base, cou­pled with higher acute drug sales in the same quar­ter last year. Its US busi­ness wit­nessed steady trac­tion over the last two quar­ters, as there was a ramp-up in sales across key di­rect-tomar­ket launches. The stock’s val­u­a­tion is not ex­pen­sive at around 23 times the trail­ing earn­ings.

DHURAIVEL GUNASEKARAN

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