Cipla Q2 Results | Drug maker beats Street estimates with 43% jump in net profit

Mumbai-based drug maker Cipla on Friday reported a 43.4 per cent year-on-year increase in consoldiated net profit to Rs 1,130.9 crore for the July-September period, beating analysts' estimates by a huge margin.

Mumbai-based drug maker Cipla on Friday reported a 43.4 per cent year-on-year increase in consolidated net profit to Rs 1,130.9 crore for the July-September period, beating analysts' estimates by a huge margin. Strength in its domestic as well as North American businesses boosted its profitability.

Its revenue from operations grew 14.6 per cent to Rs 6,678.2 crore for the second quarter of the current financial year compared with the corresponding period a year ago, according to a regulatory filing.

According to Zee Business research, Cipla's quarterly net profit was estimated at Rs 1,004 crore and revenue at Rs 6,484 crore.

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Revenue from the core pharmaceuticals segment expanded 13.4 per cent to Rs 6,452.5 crore, and that from its new ventures unit declined 5.2 per cent to Rs 263.8 crore, according to the filing.

The pharmaceutical company's total expenses increased 8.4 per cent on a year-on-year basis to Rs 5,260.2 crore for the July-Septemer period, as its cost of materials consumed rose 2.8 per cent to Rs 1,472.7 crore, according to the filing.

Cipla is the country's third-largest drug maker by sales.

Cipla shares extended their intraday gains after the earnings announcement, rising by as much as Rs 41.2, or 3.6 per cent, to Rs 1,191.3 apiece on BSE.

The pharma stock rewarded investors with a return of 16.9 per cent in the September quarter, sharply outperforming a 2.4 per cent rise in the headline Nifty index.

(This story will be updated shortly)

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Cipla Q2 results