Moneycontrol Bureau
Healthcare company Cipla said profit in April-June quarter plunged 43.7 percent to Rs 365.2 crore compared with year-ago period. It was impacted by lower operational performance and other income but supported by lower tax cost.
Revenue declined 6.4 percent year-on-year to Rs 3,594 crore in the quarter ended June 2016, dented by North America (down 21 percent) and emerging markets (down 6 percent) businesses. India revenue, that contributed 40 percent, grew by 5 percent and South Africa business increased 4 percent YoY.
Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) slipped 42.1 percent year-on-year to Rs 611 crore and margin cracked 1050 basis points to 17 percent in the quarter ended June 2016.
Overall earnings barring revenue met analysts' expectations. A CNBC-TV18 poll had estimated profit at Rs 385.2 crore on revenue of Rs 3,865.8 crore and operating profit at Rs 656.7 crore with margin at 17 percent for the quarter respectively.
Tax expenses during the quarter fell sharply by 70.7 percent to Rs 70.8 crore while other income halved to Rs 25.2 crore from Rs 50.5 crore on yearly basis.
Cipla said the board of directors today accepted resignation of Subhanu Saxena as MD & Global CEO and approved the appointment of Umang Vohra as an additional director, MD and Global CEO for a period of five years with effect from September 2016.
"MK Hamied shall continue to hold the position of non-executive vice chairman," the company said.
The scrip of Cipla closed at Rs 516.65, down 1.26 percent ahead of earnings that announced after market hours.Commenting on the earnings and resignation, Meeta Shetty of Kotak Securities said that the resignation was expected while sales numbers were a miss. Going ahead, it needs to be seen if the first quarter was a one-time miss and investors would require clarity on plants such as Indore with regard to clearance of compliance issues, she said. Watch video for more...
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