Cipla to meet revised targets

For Cipla which has seen a recovery in growth in the past two quarters, the performance in the quarter to June was one of its best.

A low base, favourable currency movement and strong growth in the domestic market helped the drug major to report a 23.7% growth in net sales and 50% growth in operating profit. The company managed to expand its margins by 490 bps to 28.2% - the highest in the last 10 quarters.

Lower raw material costs and improved product mix, due to inclusion of high margin products such as the anti-depressant Escitalopram, enabled the firm to improve its profitability. Raw material cost as a proportion of net sales dropped by 490 bps to 38.2% over year-ago levels.