Cipla takes a cautious approach towards tender business to protect margins

Tender business, which accounts for around 20% of consolidated sales, came under pressure because of intense competition and aggressive pricing

Drugmaker Cipla will participate cautiously in global tenders to protect margins after reporting muted revenue growth in the second quarter. Its net profit for the quarter declined 11 per cent to Rs 3.77 billion from Rs 4.23 billion in the same period last year following a 2 per cent decline in revenue. Revenue from operations stood at Rs 40.12 billion in the quarter. The company stock fell 7.33 per cent and closed at Rs 563.90 on BSE on Monday.

While sales in the US grew 23 per cent, revenue from domestic operations remained flat. If one takes out the impact of