Cipla Q1 net profit surges 24% to Rs 425 crore

The drug major had posted a net profit of Rs 343.70 cr for the corresponding period in FY17

Drug major Cipla today reported a 23.63% rise in consolidated net profit to Rs 424.92 crore for the first quarter ended June 30.

The company had posted a net profit of Rs 343.70 crore for the corresponding period of the previous financial year, Cipla said in a BSE filing.

Consolidated total income from operations stood at Rs 3,525.05 crore for the quarter under consideration as against Rs 3,650.03 crore for the same period a year ago.

"Despite the impact of GST on India business, we had a very healthy quarter from an operational perspective," Cipla MD and Global CEO Umang Vohra said.

The quarter saw EBITDA margins expanding to over 18% driven b the strong focus on enhancing operational efficiency and control on spends, he added.

During the quarter, the company launched four new products in the US. It also filed 3 new abbreviated new drug applications (ANDAs) and is on track to file 25 ANDAs in the full year, Cipla said.

"We are strengthening our presence in chronic segments with the launch of Prominad and Vysov in the diabetology segment in India and launch of our flagship product — FSPM in Australia, reinforcing our ongoing respiratory franchise expansion across developed markets," Vohra said.

The company is on target to ramp-up its launch trajectory in the US, he added.

Shares of Cipla were today trading at Rs 535.55 per scrip in the afternoon trade on BSE, down 2.43% from its previous close.