Cipla share price surges 7% on robust Q4 earnings

Cipla share price surged nearly 7 per cent on Wednesday after the pharma major reported a net profit of Rs 179 crore for the quarter ended March on improved sales in the domestic market and South Africa. The drugmaker had posted a net loss of Rs 62 crore in the same quarter last year.

Reacting to positive earnings, the stock gained as much as 6.78 per cent to Rs 562.50 on the BSE. The scrip settled at Rs 532.75, up 1.6 per cent.

The company's revenue rose by 3 per cent at Rs 3,698 crore during the quarter, against Rs 3,582 crore in the same period last year, the company statement said in a release.

The firm said it witnessed a strong momentum across key markets with India business delivering a strong quarter with growth at 21 per cent (GST adjusted) year-on-year basis.

Among overseas markets, South Africa, API, Europe and Sub-Saharan markets also continued strong momentum, it added.

The US business saw launches of key products and focused effort was made towards building a strong specialty portfolio for the US market, the release said.

The company increased its R&D investments in the quarter to 7.6 per cent of revenues, driven by clinical trial charges related to Advair among others, it added.

It reported full year revenues of Rs 15,219 crore, growing by 4 per cent year on year. The EBITDA, before exceptional items, grew by 14.2 per cent at Rs 2,826 crore and the net profit increased by 40 per cent at Rs 1,411 crore in financial year 2017-18.

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Cipla managing director and global chief executive officer Umang Vohra said during FY18, the firm's focus remained on strengthening portfolio and deepening presence in priority markets.

"Our focus for next year will be to continue our growth trajectory in key markets and investments in portfolio for sustainable growth," he said.

The company's scrip ended 0.88 per cent higher at Rs 524.35 on the BSE today, against 0.10 per cent rise in the benchmark.