Cipla rises almost 8%

Cipla had a good run on the BSE today. The stock price rose almost 8% to Rs.613. Its 52-week high is at Rs.663.

The stock price has reacted positively to the very good performance it reported for Q3FY18.

Its total income rose 7% (YoY) at Rs.3914 crore and net profit rose 8% at Rs.4010 crore. There was a tax reversal of Rs.64 crore v/s tax expense of Rs.128 crore (YoY) but this was more than offset by the 65% drop in other income at Rs.53 crore.

Operating margins showed an improvement from 18.6% t0 20.9% mainly on the back of cost optimization across all spends. R&D expense was at 8% of the sales.