Cipla net rise marginal on exports fall

BS 200 SCORECARD

Leading domestic drug maker Cipla has posted a marginal 5.2 per cent growth in its net profit to Rs 184.38 crore during the third quarter ended December 31, 2006, compared with Rs 175.31 crore for the quarter ended December 2005.

The net turnover for the period rose 11 per cent to Rs 904.5 crore, against Rs 811.9 crore for the previous corresponding quarter.

The company's net profit for the nine months ended December 31 increased to 30.7 per cent Rs 535.09 crore, from Rs 504.31 crore in the corresponding period last year. The net turnover for first nine months stood at Rs 2,706.67 crore, 22 per cent higher than Rs 2,210.1 crore in the same period a year ago. 
 

Rs crore	Quarter ended Dec
	2005	2006
Net sales	780.62	880.54
Other income	74.45	26.13
Total income	855.07	906.67
Expenditure	621.69	661.27
Operating profit	233.38	245.40
Net profit	175.31	184.38
EPS (Rs)	5.85	2.37

The slow pace of growth during the third quarter was primarily owing to the 34.5 per cent decline in the export revenues from bulk drug sales in key regulatory markets.

But the firm managed to maintain its proportionate share of export business vis-a-vis domestic business as the formulation exports showed 35 per cent growth for the same period. The contribution of export sales to the overall turnover of the company remained at around 50 per cent during both the quarters.

Cipla said all major segments have shown satisfactory performance in the domestic market. "In the exports markets, anti-retrovirals, anti-ulcerants, anti-asthmatics, anti-depressants and cardiovascular segments have performed well," stated a Cipla communiqué.

The company also said during the quarter, material cost (as a per cent to income from operations) increased owing to change in product mix and lower API sales to regulated markets.