Drug major Cipla reported over two-fold jump in consolidated net profit to Rs 357.68 crore for the fourth quarter ended March 31, mainly on account of robust sales across markets. The company has also decided to raise funds of up to Rs 6,000 crore. It had posted a net profit of Rs 153.25 crore for the corresponding period previous fiscal.
Consolidated total revenue from operations stood at Rs 4,403.98 crore for the quarter under consideration. It was Rs 3,697.97 crore for the same period a year ago.
For the 2018-19 fiscal, the company's net profit was Rs 1,492.44 crore as against Rs 1,416.57 crore in 2017-18. Total revenue from operations for the last fiscal stood at Rs 16,362.41 crore. It was Rs 15,219.25 crore in the preceding financial year.
CNBC-TV18’s Archana Shukla spoke to Umang Vohra, managing director and global CEO, Cipla, about the Q4 results and pricing pressure in the US market.
“I think there is more pricing pressure (in the US), there are more people getting approved on the same day. Earlier there used to be a staggering approval and the time period between the approval could be one month, could be six months. Now we see a lot of approvals coming on day one of launch that means prices go low. Even if you are on a limited competition product, the next entrant could well be just a month after you,” Vohra said.
In terms of strategy and launches, Vohra added, “The strategy is tweaked not changed. We always wanted to do inhalers, we always wanted to do oncology products, we always wanted to do a lot more of limited competition products. It is there. However, at the sametime, we have realised that going after 30 products is too much in this environment. So we are now somewhere rationalising around the 20 odd product range but within that, we want to ensure that a large number of them are limited competition products. That is our strategy.”