Cipla Q3 result: Profit up 49% at Rs 1,571 cr on strong demand in N America

Cipla, one of India's largest drugmaker by sales, reported a bigger-than-expected third-quarter profit on Tuesday, helped by strong demand, especially in the key North American market.

The company's consolidated net profit increased nearly 49 per cent to Rs 1,571 crore  ($181.6 million) in the October-December quarter, beating analysts' estimate of Rs 1,212 crore, as per data compiled by LSEG.

Total revenue climbed 7.1 per cent to Rs 7,073 crore, surpassing analysts' expectations of Rs 6,951 crore.

Cipla's sales are usually lifted by demand for tumour drug Lanerotide, which is its second-biggest revenue generator. However, the company had warned in October that certain supply chain issues related to the drug would last until the fourth quarter.

 

Last week, rival Dr Reddy's reported a lower-than-expected quarterly profit due to weak US sales.

Indian generic drugmakers have been struggling with slowing US sales, delayed approvals for new drug applications and lower pricing amid stiff competition, according to analysts.