Cipla Q1 net profit lags estimates as higher costs hurt

Drug major Cipla on Thursday reported a 39.30 per cent dip in its consolidated net profit at Rs 294.58 crore for the quarter ended June 30, 2104 mainly on account of an increase in expenses.

The company had posted a net profit after taxes, minority interest and share of profit/(loss) of associates of Rs 485.35 crore for the corresponding period of the previous fiscal, Cipla said in a filing to BSE.

Consolidated net sales of the company rose to Rs 2,647.20 crore for the quarter under consideration as against Rs 2,331.22 crore for the same period year ago.

Employee benefits expense of the company rose to Rs 479.98 crore for the quarter ended June 30, 2014 as against Rs 329.20 crore for the same period year ago, Cipla said.

Cipla currently has over 2,000 products with presence in over 170 countries.

Shares of Cipla Ltd on Thursday closed at Rs 448 per scrip on BSE, up 1.98 per cent from its previous close.