Cipla gains 7% on healthy operational performance in Q3

The stock surged 7% to Rs 608 after the EBITDA margins in December quarter improved to 20.9% from 18.6% in year ago quarter and 19.7% in previous quarter.

Cipla has surged 7% to Rs 608 on BSE in early morning trade after the company reported a healthy performance in December quarter (Q3FY18) with EBITDA (earnings before interest, tax, depreciation and amortization) margins improved 230 bps to 20.9% from 18.6% in year ago quarter and 19.7% in previous quarter.

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