Cipla, the third largest pharma major with net sales of Rs.5,350 crore plus, has received major jolt during the quarter ended December 2010 on account of increase cost of production, rupee appreciation and investment in Indore SEZ. Its net profit declined by 19.5 per cent to Rs.232.69 crore from Rs.289.03 crore in the similar period of last year. Its net sales improved by 11.7 per cent to Rs.1501 crore from Rs.1344 crore. The earnings per share impacted adversely due to lower profit and worked out to Rs.2.90 as against Rs.3.60 in the last period.
The company's exports amounted to Rs.781.78 crore as compared to Rs.698.66 crore. Export as percentage of net sales worked out to 52 per cent. Its exports of formulation increased by 11.7 per cent to Rs.643.18 crore from Rs.575.76 crore and that of APIs and other improved by 12.8 per cent to Rs.138.60 crore from Rs.122.60 crore.
For the first nine months of 2010-11, Cipla's net profit declined by 6.6 per cent to Rs.753.12 crore from Rs.806.48 crore. Its employees cost increased by 51.7 per cent to Rs.410.23 crore. The depreciation provision also increased to Rs.183.98 crore from Rs.139.29 crore. However, the company reduced its interest burden to Rs.3.32 crore from Rs.23.20 crore. Its net sales for the nine months improved by 11.6 per cent to Rs.4508 crore from Rs.4041 crore. Its exports improved by 11.3 per cent to Rs.2380 crore and domestic sales by 11.5 per cent to Rs.2165 crore from Rs.1943 crore in the last period.