Cipla said on Friday that its profit for the June quarter went up 18.3% on a year-on-year basis, with the company shrugging off a restructuring of its domestic business to beat estimates.
What Happened: India’s second-largest pharmaceutical company posted a net profit of ₹1,177.64 crore crore for the quarter ended June 30, compared with ₹995.70 earned in the same quarter a year earlier. The figure came in ahead of analyst estimates of around ₹1,084 crore.
The pharma major’s revenue from operations climbed to ₹6,693.94 crore, an increase of 5.8% from ₹6,328.89 crore posted a year ago. This was slightly below street expectations of ₹6,782 crore. EBITDA for the quarter stood at ₹1,716, up around 13.8% from the ₹1,508 crore posted in the same quarter of the previous year.
See Also: Nestle India Shares Tank As Net Profit Rises 7% But Misses Street Estimates
The restructuring of Cipla’s domestic trade generics segment was likely to dampen earnings growth during the quarter, though the management has said it is optimistic about mitigating the adverse impact in coming quarters.
While Cipla’s India business was affected by the distribution model change in trade generics, its U.S. business outperformed, reaching an all time-high revenue of $250 million, up 13%.
“Going ahead, focus will be on growing our key markets, further building our flagship brands, investing in future pipeline as well as focusing on resolutions on the regulatory front," Umang Vohra, managing director and global CEO of Cipla said in a press release.
Price Action: Following the earnings announcement, Cipla’s share price gained 5.26% to trade at ₹1,578.90 in the afternoon session. The stock has gained nearly 20% so far this year.
Read Next: Google Maps Rolls Out Metro Ticket Booking In Kochi, Chennai Via Namma Yatri
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.