Cipla, the fifth largest pharma major from Mumbai with net sales of Rs.13,300 crore, has received major setback during the first quarter ended June 2016 and its net profit declined sharply by 43.8 per cent to Rs.365 crore from Rs.649 crore in the similar quarter of last year. EBDITA also declined by 42.4 per cent to Rs.636 crore from Rs.1,105 crore. Its consolidated net sales also declined by 6.9 per cent to Rs.3,500 crore from Rs.3,761 crore. With lower net profit, its EPS declined to Rs.4.55 from Rs.8.09 in the last period.
The company management has accepted resignation of Subhanu Saxena as managing director and global chief executive officer and approved the appointment of Umang Vohra as an additional director, and managing director and global chief executive officer of the company for a period of five years, with effect from September 1, 2016. Further, Samina Vaziralli has been designated as executive vice-chairman effective September 1, 2016.
Cipla's pharmaceutical sales declined by 6.6 per cent to Rs.3,574 crore from Rs.3,828 crore and sales from new ventures increased to Rs.20 crore from Rs.10 crore.
The company's US subsidiary acquired 100 per cent stake in two companies viz., InvaGen Pharmaceuticals Inc and Exelan Pharmaceuticals Inc.