Cipla Q2 Profit Falls 35%, US & India Compel Revenue Growth

Healthcare firm Cipla has reported a 35 per cent degrowth in second quarter profit at Rs 354.3 cr as compared to year-ago period, affected by weak operational performance. The revenue grew by 8.6 per cent year-on-year (YoY) to Rs Rs 3,751 cr in September quarter, driven by India and US businesses. Numbers weren’t comparable entirely as the US and overall business helped by consolidation of Invagen and numbers in FY16 benefitted from the supplies of Nexium generic API.

Earnings before interest, tax, depreciation and amortization or EBITDA slipped 13.4 per cent to Rs 681 cr and margin contracted by 465 basis points to 18.1 per cent on yearly basis. India business showed strong with most therapies growth and retaining leadership position, which contributed 39 per cent to revenue, up 21 per cent year-on-year at Rs 1,467 cr in Q2.

North America, which contributed 18 per cent to sales, increased 38 per cent to Rs 660 cr on yearly basis, driven by novel launches in Q2 with majority of products that has double digit market share. South Africa business grew by 3 per cent YoY to Rs 459 cr while emerging markets fell 1 per cent to Rs 845 cr, Europe down 27 per cent at Rs 116 cr and Global API sales declined 50 per cent YoY to Rs 110 cr.

On 9^th November, Cipla share price closed at Rs.526.30 on the NSE. Cipla is analyzed by Dynamic Levels as the top 500 performing stocks for this quarter among the 1700 stocks which are listed on the NSE.  Cipla is fundamentally strong and is safe for investment, as per Dynamic Levels analysts. In order to know about the support and resistance levels of the scrip and also its fundamentals and financials, please a pay a visit to Cipla share price history.

Cipla Share Price Rises 3% Despite Missing Q1 Estimates

Cipla share price soared nearly 3 per cent to hit intraday high of Rs 531.10 today even after the company posted lower-than-expected net profit in the June quarter.

Cipla's net profit came in at Rs.365 crores, as compared with expectations of Rs.376 crores. The pharma company’s net profit on an annual basis slumped 44 per cent. A sharp rise of 40 per cent in the research and development (R & D) expenses also impacted the profit. The Mumbai-based pharma company's profit numbers were affected by the government's measures to cut down on drug prices. 

During the June quarter, the pharmaceutical company’s operational profit stood at Rs.611 crores as compared to Rs.1,035 crores during the same quarter a year ago. As of 10:06 a.m., Cipla share price traded 1.11 per cent up at Rs.521.75, outperforming the Nifty that was trading on a flat note.

Meanwhile, market experts and stock analysts have upgraded the pharma company from underperform to outperform. They see favorable risk-reward ratio at current levels. The analysts also expect earnings growth to be strong in FY18-19. On a year-on-year (YoY) basis, Cipla shares are down 18 per cent. 

Currently Cipla share price is trading 2.51 per cent higher at Rs.528.90 on NSE. It opened at Rs.510.20 from a previous closing of Rs.515.95. According to the Dynamic Levels market researchers and stock analysts, the scrip belongs to the top 500 group out of the 1700 shares listed on NSE. The share is safe for investments as per the analysts. 

To acquire information on the support and resistance levels of the stock, please visit Cipla share price history. 

Cipla Reported its Q1 FY17 Results

Cipla reported a consolidated net profit of Rs 365 crore on Friday 12^th August 2016 for the quarter ended 30^th June 2016, which is almost in line with the Rs 366 crore profits estimated by analysts in a poll.

The company registered revenue of Rs 2,741.24 for the Q1 FY17 which is almost equal to its revenue of Rs 2,740.89 crore for the quarter ended 31^st March 2016. The other income of the company for the quarter was Rs 31.19 crore making the total income of the quarter Rs 2,772.43 crore.

Consolidated sales for the quarter stood at Rs 3,500 crore, compared with Rs 3,760 crore reported for the year-ago quarter. Analysts had estimated sales for the quarter at Rs 8,340 crore.

The Profit before Tax for the Q1 FY17 is Rs 327.73 crore as compared to the quarter before where the same was Rs 34.62 crore. EBITDA fell to Rs 611 crore from Rs 1,054 crore in the year-ago quarter. However, margin at 17 per cent was exactly in line with the estimate. CEO for global business Subhanu Saxena resigned, the company said in a regulatory filing to the exchange.

The EPS (earning per share) of the Company for the quarter ended 30^th June 2016 has been recorded as Rs 3.47. The same for the previous quarter was Rs 0.43.

The result was filed to BSE at 15:37 hours today (after market hours).Cipla share price closed at Rs 515.95, down by 2.10 per cent.The share price opened at Rs 524.00 from a previous closing of Rs 523.95.