Cipla Rallies Despite Profit Drop As Brokerages Raise Price Targets
Cipla to stay focused on building operational efficiencies and strengthening its presence.
- Cipla’s second quarter profit fell 34.74 percent to Rs 354.3 crore.
- Total income from operations rose to Rs 3,751 crore.
- Macquarie and Morgan Stanley raised their price targets for the stock.
- Stock rallied as much as 7.1 percent to Rs 563.75 as of 9:40 a.m.
Drug major Cipla Ltd. reported a 34.74 percent slide in its consolidated net profit to Rs 354.3 crore for the second quarter ended September 2016, mainly on account of increase in expenditure.
The company had posted a net profit after taxes, minority interest and share of profit/loss of the associates of Rs 543 crore for the same period a year ago, Cipla said in a filing to BSE.
Consolidated total income from operations, however, rose to Rs 3,751 crore for the quarter under review as against Rs 3,455 crore a year earlier.
The performance reflects improvement in the quality of the base business, endorsing our strategic intent of investing in future through increased R&D efforts.Umang Vohra, MD And Global CEO, Cipla
The company continues to stay focused on building operational efficiencies and strengthening its presence in priority markets.
The company launched six new products during this quarter in the U.S. market and continues to invest in building a niche and differentiated product portfolio, Cipla said.
The integration plan of InvaGen Pharmaceuticals Inc and Exelan Pharmaceuticals Inc is on track, it added.