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EBITDA margins have been improving continuously driven by cost optimization across all spend lines despite R&D getting stepped up to 7.6% of sales during the quarter, Cipla said in a press release.
Cipla reported 7.7% year on year (YoY) growth in its consolidated net profit at Rs 4.01 billion in Q3FY18, from Rs 3.75 billion a year earlier. The net profit impacted by one-off related to changes in US tax rates and drop in value of intangibles for US. The adjusted net profit grew 25% on YoY basis.
Total income from operations increased 7% to Rs 39.14 billion from Rs 36.47 billion in the corresponding quarter of previous year.
Strong momentum continues across key markets including India, South Africa among others; India recorded healthy double digit growth with South Africa delivering its highest ever quarter in terms of sales, the company said.
Analyst at Antique Stock Broking maintain ‘buy’ rating on the stock with target price of Rs 660 as the brokerage firm believe that the operational efficiencies seen in the past three quarters should continue and can lead to 5-7% earnings upgrade in the near term.
At 09:32 AM; the stock was trading 6% higher at Rs 605 on BSE, as compared to 0.66% rise in the S&P BSE Sensex. A combined 1.82 million shares changed hands on the counter on BSE and NSE so far.