Cipla, the country's second-largest generic drugmaker by market capitalisation, reported on Wednesday a 17.1 per cent drop in quarterly profit, dragged down by higher tax expenses and weak sales in domestic market.
Net profit came in at Rs 332 crore ($46.36 million), compared with a profit of Rs 401 crore last year.
Twenty analysts had expected the generic drugmaker to post a profit of Rs 372 crore, according to Refinitiv Eikon data.
Cipla, in its last quarterly earnings in November, had warned of headwinds in the second half of the financial year.
The upcoming challenges include capacity balancing in certain categories at plants, sanctions, higher crude and commodity prices, Cipla had stated earlier.
During the third quarter, the company reported a total tax expense of Rs 126 crore, against a tax credit of Rs 64.23 crore last year.
India sales, which accounted for nearly 40 per cent of the total, declined 1 per cent to Rs 1,585 crore, Cipla said.
However, net sales rose 1.9 per cent to Rs 3,906 crore, while North America sales surged 31 per cent to Rs 849 crore.
Shares in Cipla closed 5.3 per cent firmer on Wednesday after the results were announced in a Mumbai market, which ended 1.17 per cent higher.
($1 = Rs 71.61)
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