After Q1 results, Cipla warns of margin pressure over cost increases

Q1 net profit up 10 per cent, ties up for biosimilars in emerging markets

Cipla is focusing on limited competition launches in the US and marketing tie-ups for biosimilars for revenue growth but has cautioned that an increase in raw material prices could impact its profit margin in coming quarters.

The drug maker posted 10 per cent growth in net profit to Rs 4.51 billion in first quarter of FY 2019 on a year-on-year basis. Consolidated revenue rose 12 per cent to Rs 39.39 billion due to growth in India and South Africa markets. US business remained flat on year-on-year basis and declined 5 per cent sequentially as the company discontinued certain low margin products.