Cipla Gains 3% on Strong Outlook for FY16

Cipla shares gained as much as 3 per cent on Friday after its management maintained strong growth outlook for the current fiscal.
  At its annual general meeting, chairman Yusuf Khwaja Hamied said revenue growth for FY16 will be around 20 per cent and overseas business may start contributing 65-70 per cent to total revenue in due course.
  Cipla's consolidated revenue in FY15 had grown at 10 per cent, which is much lower than the revenue growth posted by it in the past. Mr Hamied said statutory price cuts led to lower revenue in FY15 while profit margin fell due to diverse investments.
  However, in FY16 the company expects to report good revenue growth as it has de-risked business in certain markets, said Mr Hamied.
  Cipla has also received US drug regulator's nod under "President's Emergency Plan For AIDS Relief" for a paediatric HIV drug, which is likely to support its revenue growth in FY16, the company said.
  Cipla shares ended 0.2 per cent lower at Rs 659.75 apiece, compared to 0.67 per cent gain in the broader Nifty.