Cipla Names Samina Vajiralli as Executive Vice Chairman, Umang Vhora as Global CEO
Cipla reports sharp drop in profit and margins in the first quarter.
Top Management Change
Cipla Ltd. today named Samina Vaziralli, daughter of MK Hamied as Executive Vice Chairman of the company. Vaziralli, joined the company five years ago, and was Executive Director and Head of Strategy and Mergers and Acquisitions at Cipla.
The company also announced Umang Vohra, currently the Chief Operating Officer at the company, as Global CEO and Managing Director once Subhanu Saxena steps down on August 31. Saxena cited move back to United Kingdom due to family issues as his reason for stepping down. The day-to-day operations will be under Umang Vohra, Vaziralli clarified.
Even though we are promoter led, we are absolutely professionally managed. And as CEO and MD, Umang is in-charge of the operations of Cipla. My role is to be on the board, provide governance and make sure the fabric of the company remains intact and also what the vision and the strategy we set out, we make sure the company remains on track and undertake course correction wherever it is required.Samina Vaziralli, Executive Vice Chairman, Cipla
Cipla Ltd. posted a 43.7 percent decline in profit for the first quarter of financial year 2017, on account of high base of last year due to generic Nexium exclusivity.
The pharmaceutical company’s net profit for the April to June period fell to Rs 365 crore from Rs 649 crore in the corresponding period last year, the company said in a filing to the exchanges. The consensus of analyst estimates tracked by Bloomberg stood at Rs 372 crore.
Revenue decreased 6.9 percent to Rs 3,500 crore from Rs 3,761 crore in the same quarter the previous year. The Bloomberg consensus estimate was Rs 3,909.4 crore.
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Earnings before interest, taxes, depreciation and amortisation dropped 42 percent to Rs 611 crore from Rs 1,055 crore earlier. The EBITDA margin contracted sharply to 17 percent from 27.5 percent.
Cipla Guidance
The company says the industry is expected to grow at 10-12 percent in the financial year 2016-17, and it will grow higher than industry, Umang Vohra said
We have signaled 16-18 percent EBITDA and 7-8 percent R&DUmang Vohra, Global CEO Designate, Cipla
Vohra added that while domestic sales were impacted by the price notification in the first quarter, the company is seeing healthy second quarter domestic sales.
