Q2 Results: Cipla’s Profit Misses Lowest Estimate

Cipla Ltd.'s quarterly profit for the second quarter missed the lowest analyst estimate.

Net profit declined 11 percent year-on-year to Rs 377 crore for the three-month period ending September, the drugmaker said in an exchange notification today. That missed even the lowest analyst estimate of Rs 390 crore, Bloomberg data showed.

Net sales declined 2 percent to Rs 4,011 crore year-on-year, versus a consensus expectation of Rs 4,290 crore.

The operational performance, too, missed estimates. The operating income, or earnings before interest, tax, depreciation, and amortisation, fell 12 percent over the last year to Rs 702 crore—the consensus estimate was Rs 837 crore. The operating margin contracted to 17.5 percent during the period from 19.7 percent a year ago. The analysts had forecast margin to be at 19.5 percent.

Shares of Cipla erased their gains and fell as much as 1.4 percent to Rs 598.60 apiece after the results announcement. That compares with a flat NSE Nifty Pharma Index.