Cipla slips up
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.