Shares of Cipla tumbled more than 8% on Tuesday even after the pharmaceutical company reported a rise of 19% in the consolidated net profit.
Shares of Cipla tumbled more than 8% on Tuesday even after the pharmaceutical company reported a rise of 19% in the consolidated net profit. India’s second-largest drugmaker Cipla’s consolidated net profit was at Rs 423 crore for the July-September quarter for the financial year 2017-2018. The company had reported a net profit of Rs 354 crore in the corresponding period of FY 2016-2017. Following the results announcement, the stock of Cipla crashed as much as 8.24% to hit the day’s low of Rs 601.4 on BSE. Cipla is the second-largest drugmaker by market capitalisation and is a component of both the key indices Sensex and Nifty.
The company’s total revenues for second-quarter was at Rs 4,082 crore, growing by 9% from Rs 3,751 crore in the same period last fiscal. EBITDA rose 18% to Rs 804 on a year-on-year basis. “The quarter saw significant growth in the India business and continued momentum across other key businesses with continued control on spends leading to improvement in the EBITDA margins,” company said in an exchange filing.
The key product approvals in the US would drive a good mix of differentiated product launches in the upcoming quarters, Cipla said in a press release. The company has recorded a double-digit growth across South Africa, API, Europe and other emerging markets, Cipla added.
Meanwhile, shares of the Mumbai-based pharmaceutical company Lupin dived nearly 18% to hit the 52-week low on Tuesday after the US drug regulator issued warnings for company’s two sites. USFDA issued a combined warning letter for company’s Goa and Indore (Pithampur Unit II) sites. The stock of the drugmaker tanked as much as 17.73% to hit the 52-week low of Rs 851.2 on BSE. Following the slump in the shares of Lupin, the key equity indices Sensex and Nifty slipped 1% each. The benchmark Sensex was trading 338.48 points or 1% lower at 33,392.71 points.