Declining India business pulls down Cipla's Q1 growth; US sales grow

Profitability though got a boost with higher contribution from limited competition products in the US

Cipla’s performance for the June quarter (Q1) was a mixed bag. While revenue growth was subdued - impacted by distributor level adjustments in India business - cost controls and better growth in the US drove operating performance and net profit. 

Cipla’s domestic sales (a third of revenues) diasppointed after declining 12 per cent year-on-year and 10 per cent sequentially. The company attributed the same to a conscious decision on realignment of distributors in trade generics. According to Cipla, the secondary performance, however, remained strong across key therapies with Respiratory and Cardiology segments outpacing the market. 

The major boost came from