Cipla tumbles after weak Q2 earnings

Cipla fell 7.69% to Rs 561.70 at 15:20 IST on BSE after consolidated net profit fell 15.64% to Rs 366.91 crore on 1.01% decline in net sales to Rs 3947.93 crore in Q2 September 2018 over Q2 September 2017.

The result was announced during trading hours today, 5 November 2018.

Meanwhile, the S&P BSE Sensex was down 47.86 points, or 0.14% to 34,963.79.

On the BSE, 7.53 lakh shares were traded in the counter so far compared with average daily volumes of 1.13 lakh shares in the past two weeks. The stock had hit a high of Rs 616.60 and a low of Rs 558.10 so far during the day. The stock hit a 52-week high of Rs 678 on 19 September 2018. The stock hit a 52-week low of Rs 508.10 on 22 May 2018.

Umang Vohra, MD and Global CEO, Cipla, said that the company had a modest quarter but maintained a strong performance in its private market segment across geographies. Cipla's limited competition assets in the US are ramping up to drive quarter-on-quarter growth. The company also recently announced the approval of Metoprolol, another limited competition asset. As the firm enters the second half of this fiscal, multiple headwinds are likely to impact its reported performance. Having said that, the company is focusing on positioning its businesses for long term growth.

Cipla is a global pharmaceutical company focused on complex generics, and deepening portfolio in India, South Africa, North America, and key regulated and emerging markets.

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