Cipla Q2 Net Profit Up 12% At Rs 797 Crore

Drug major Cipla on Friday said its consolidated net profit increased 12 per cent to Rs 797 crore for the second quarter ended September 30 on the back of robust sales across domestic and the US market.
    
The Mumbai-based drug maker had reported a consolidated net profit of Rs 709 crore in the July-September period of the previous fiscal.
    
Its total revenue from operations rose to Rs 5,829 crore for the September quarter from Rs 5,520 crore in the year-ago period, Cipla said in a regulatory filing.
    
In respect of the transfer of an India-based US business undertaking, the board decided not to proceed with the proposed transfer, considering various factors, including the current operating environment, it added.
    
Commenting on the Q2 results, Cipla MD and Global CEO Umang Vohra said the company's performance reflects strong momentum in the domestic business and solid execution on differentiated portfolios in the US.
    
"The launch of Lenalidomide is driving our overall revenue to a multi-quarter high and expansion in our reported operating profitability, despite external headwinds. Our reported operating profitability of 22.3 per cent and is tracking well within our full-year guidance of 21-22 per cent range," he added.
    
The company's proactive logistics management, cost rigour and calibrated pricing actions have helped offset the adverse impact of inflationary cost elements on profits, Vohra stated.
    
"We are closely working with USFDA on Goa observations, de-risking key assets and improving compliances holistically across manufacturing locations," he added.
    
The company reported a 6 per cent growth in Indian revenues to Rs 2,563 crore compared to Rs 2,416 crore in the same period last fiscal.
    
Similarly, the drug firm's North American business stood at 1,432 crore, up 35 per cent from Rs 1,060 crore in the year-ago period.
    
Shares of the company on Friday ended 0.95 per cent down at Rs 1,148.90 apiece on the BSE.