Cipla net dips 44%, CEO to step down

NEW DELHI: The country’s fifth-largest drugmaker by sales, Cipla, on Friday reported a 44% decline in net profit to Rs 365.2 crore during the April-June quarter,

NEW DELHI: The country’s fifth-largest drugmaker by sales, Cipla, on Friday reported a 44% decline in net profit to Rs 365.2 crore during the April-June quarter, against the same period last year. Revenue declined 6.4% to Rs 3,594 crore, compared to the year-ago period.

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Along with the steep fall in profit, the company also announced a major top management rejig and said MD and global CEO Subhanu Saxena has resigned. “The current incumbent, Subhanu Saxena, will step down from his position on August 31, 2016 to attend to emergent family priorities. Subhanu joined Cipla in February 2013 as CEO,” Cipla said.

The company has appointed chief operating officer Umang Vohra as new CEO and MD. The pharma major also named Samina Vaziralli as executive vice-chairman with effect from September 1, 2016.

The company’s EBITDA (earnings before interest, tax, depreciation and amortization) slipped 42.1% year-on-year to Rs 611 crore, whle margin cracked 1,050 basis points to 17% in the quarter ended June 2016.