Cipla drops after announcing weak Q1 results

Cipla dropped 0.42% to Rs 514.50 at 9:30 IST on BSE after the company reported 43.74% fall in consolidated net profit to Rs 365.24 crore on 6.94% fall in total income to Rs 3618.92 crore in Q1 June 2016 over Q1 June 2015.

The result was announced after market hours on Friday, 12 August 2016.

Meanwhile, the S&P BSE Sensex was down 27.18 points or 0.1% at 28,125.22.

More than usual volumes were recorded on the counter. On BSE, so far 2.64 lakh shares were traded in the counter as against average daily volume of 1.94 lakh shares in the past one quarter. The stock hit a high of Rs 517 and low of Rs 509 so far during the day. The stock had hit a 52-week high of Rs 748 on 17 August 2015. The stock had hit a 52-week low of Rs 458.25 on 25 May 2016.

The large-cap company has equity capital of Rs 160.72 crore. Face value per share is Rs 2.

Cipla's earnings before interest, taxation, depreciation and amortization (EBITDA) fell 42% to Rs 611 crore in Q1 June 2016 over Q1 June 2015. EBITDA margin dropped to 17% in Q1 June 2016 from 27.5% in Q1 June 2015.

Cipla said that the growth momentum in key markets - India, South Africa and the US with focused cost containment measures has resulted in enhanced profitability in the base business. The recent acquisitions of InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc. are EBITDA margin-accretive at a consolidated level with the integration plans progressing smoothly. The company is preparing itself for the future with focused investments in R&D as well as portfolio build-up through strategic inorganic moves. The quarter also saw an improvement in cash flows on account of operational efficiencies, Cipla said.

Cipla also announced the appointment of Umang Vohra as the Managing Director & Global Chief Executive Officer of the company effective 1 September 2016. The current incumbent, Subhanu Saxena will step down from his position on 31 August 2016 to attend to emergent family priorities. Subhanu joined Cipla in February 2013 as CEO. Umang joined the company in October 2015 as the Global Chief Financial & Strategy Officer and was elevated as the Global Chief Operating Officer early this year as part of a planned progression. MK Hamied will continue to serve on the Board as the non-executive Vice-Chairman.

Cipla is a global pharmaceutical company. The company's portfolio includes over 1,500 products across wide range of therapeutic categories with one quality standard globally.

Powered by Capital Market - Live News