This story is from February 11, 2016

Cipla’s Q3 net rises 4.6% to Rs 343cr

Drug major Cipla’s net profit increased 4.6% to Rs 343 crore in the third quarter ended December 2015, on the back of higher sales at Rs 3,107 crore.
Cipla’s Q3 net rises 4.6% to Rs 343cr
Mumbai: Drug major Cipla’s net profit increased 4.6% to Rs 343 crore in the third quarter ended December 2015, on the back of higher sales at Rs 3,107 crore. However, the company posted lower than expected numbers due to a one-off charge related to changes in the way it distributes drugs in the domestic market. Changes in distribution policy, higher spending on R&D ahead of product launches and depreciation of South African rand impacted profitability.

The company’s earnings before interest tax and depreciation declined 18% to Rs 454 crore. While revenue rose 12.3% to Rs 3,107 crore largely due to a 28% growth in exports. However, domestic sales fell 0.4% due to changes in drug distribution policy.
A Cipla top official said it is scaling up presence in the US with new product filings and is close to concluding its $550 million-dollar acquisition of US drug maker Invagen and Exelan.
Responding to a query on the warning letter received by the US Food and Drug Administration for its Indore plant, Subhanu Saxena, Cipla chief executive, said the company had responded to the FDA observations, which the company believes were “not significant”, and is confident would be resolved soon.
According to the management, the company lost 2.5% on back of change in distribution policy, and around 0.7% impact on back of currency impact of ZAR. The R&D expenditure during the quarter was 8% of sales compared to 6% of sales during the last corresponding period.
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