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Cipla warns of headwinds in second half after second-quarter profit miss


(Reuters) - Ltd, India's second-largest drugmaker by market capitalisation, warned on Monday of "multiple headwinds" in the second half of the financial year after its quarterly profit fell short of analysts' estimates.

Shares of the company declined as much as 7.7 percent, in their sharpest intraday drop since November 2017.

The upcoming challenges include capacity balancing in certain categories at plants and sanctions, said in a post-earnings presentation without elaborating.

Higher crude and commodity prices, and rising supplies sourced from will also pose challenges in the next two quarters, the company added.

Indian companies had been hit by weak sales in the as regulatory bans and warnings over quality control violations at production plants weighed on their profitability. Although pricing pressure remains in the United States, Cipla's business grew 23 percent in the September quarter.

The company's second-quarter profit fell nearly 11 percent from a year earlier to 3.77 billion rupees as sales slowed in markets such as and parts of

Analysts on average had expected a profit of 4.56 billion rupees for the quarter ended Sept. 30, according to Refinitiv data.

Sales in were flat, while those in South fell about 3 percent, said https:// Total net sales declined 1 percent to 39.48 billion rupees ($540.21 million).

(Reporting by in Bengaluru; Editing by Subhranshu Sahu)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 05 2018. 14:15 IST