 "Cipla profit up 44% on strong export growth")
Growth in exports led to 44% increase in Cipla's net profit in the second quarter FY 16. Net profit for the period stood at Rs 431 crore in Q2 FY 16 as against Rs 299 crore in the same period last year.
Revenue grew 25% to Rs 3452 crore in the quarter under review. Exports of formulations and active pharmaceutical ingredients grew over 50% and 60% respectively but domestic sales remained flat.
According to analysts, the sales from generic version of heartburn drug Nexium boosted the drug maker's international revenue.
Cipla manufactures the drug for its partner Teva Pharmaceuticals which has a six month exclusivity following the expiry of patent last May. Originally Ranbaxy had the exclusivity to sell the generic version but its approval was withdrawn by US Food and Drugs Administration.
Cipla said the Q2 results included one off revenue from the US market but did not share additional details. The company has made $ 550 million acquisition of two generic drug makers in the US but is yet to conclude the deal.
Brokerages were expecting the company to post 75-80% growth in net profit, anticipating strong sales growth in both domestic and international businesses and the results thus missed estimates.