MUMBAI: On Friday Cipla chief executive Subhanu Saxena has resigns, citing family reasons. India's third major drugmaker has elevated COO Umang Vohra as its CEO at a time when it's stressed to discover its feet in the worldwide market. On Friday Cipla also declared a 44% year-on-year decrease in its net profit results for the initial quarter concluded June at Rs 365 crore. Revenues too depreciated by 6% at Rs 3,594 crore.
Subhanu Saxena has also further conveyed that, family reasons brought me to India, family reasons have forced me to US. We have directed to get a smooth transition. Saxena has also further conveyed that, when he took charge he had three personal goals set for the corporation, which were to take Cipla on world stage, put a sequence in place, and facilitate the generational transition among promoters. He said that, I think I have achieved those.
Saxena didn't identify his next move but conveyed he will look at future opportunities. In the rationalized top management, Samira Vaziralli, daughter of MK Hamied and niece of Y K Hamied, has been eminent as executive vice chairman. In the past five years under the leadership of Saxena, Cipla penetrate new geographies, primarily the US, built a top tier of managerial squad and jumped into an acquisition mode, but it has lagged behind its peers on revenues.
The corporation has also further conveyed that, cipla accredited the drag in its initial quarter numbers mainly to decline in its earnings in the US and India markets. India market, which climbs by 4%, was hit by the policy changes like price revision. Cipla's earnings before interest, tax, depreciation and amortisation (EBIDTA) depreciated by 42% from past year at Rs 611 crore. Umang Vohra, the new CEO, uttered confidence that the corporation will recover in the coming quarters.
He alos further conveyed that, in the approaching quarter we will focus on India, we expect t to grow sooner here. Vohra has also further conveyed that, in US market we have attractive pipeline of filings and we will look at speciality segment, this could be through acquisition or with existing filings.
Cipla administration conveyed investors that it changed its European business plan, switching to a business to business model from the preceding direct to market strategy. Cipla representatives conveyed, have resulted in downsizing of staff. Cipla conveyed the US business had a one-time revenue of esomeprazole, which imitate in its books previous year. The corporation gave a guidance of 10-12% for its revenue growth in the coming quarters.