Cipla stock falls 7% on weak Q2 results; pressure on tender biz to continue

Company cautious on prospects, given supply disruptions & commodity inflation, among others

The Cipla stock shed as much as 7 per cent on weak September quarter results as well as a guarded outlook over the next couple of quarters. 

The pharmaceuticals major said there was pressure on the tender business, supply disruptions, commodity inflation and business impact from countries hit by sanctions.

This hit Street sentiment. While some issues such as the disappointing India business performance are temporary, significant shrinkage in the global tender business is expected to recur. 

Due to seasonal disruptions and delay in monsoon, the domestic acute therapy business was hit and India revenues, which account for 40 per