Weak domestic sales hurt Cipla in Q4

Sales from this segment account for the largest share in revenue

Cipla’s lower-than expected performance in the March quarter comes at a time when the sentiment for the pharmaceuticals sector is already weak. Stocks across the pharma pack cracked on Thursday, and Cipla, too, lost more than three per cent to close at Rs 504.10, even as results were declared after market hours. The below-par results could thus weigh on the stock on Friday.

Earnings before interest, tax, depreciation and amortisation (Ebitda) at Rs 480 crore came way below the Rs 688 crore, indicated by the Bloomberg consensus estimate; Ebitda margin fell to 13-14 per cent levels. This is a big disappointment,