Cipla, a third largest pharmaceutical company in India, has suffered a setback during the year ended March 2011 mainly due to increased factory overheads at Indore SEZ and one time exceptional income of Rs.95 crore during 2009-10. Its consolidated net profit declined by 10.6 per cent to Rs.967 crore from Rs.1,081 crore in the previous year. Its EBTIDA also moved down by one per cent to Rs.1,427 crore from Rs.1,441 crore. With fall in profits, its earnings per share nosedived to Rs.12.05 from Rs.13.69. The scrip declined by Rs.5.95 to Rs.303.40 on BSE.
Cipla's consolidated net sales increased by 14.3 per cent to Rs.6,124 crore from Rs.5,360 crore. The domestic sales increased by 12.2 per cent to Rs.2,818 crore from Rs.2,511 crore in the previous year, contributing 45.7 per cent to its gross sales as against 46.4 per cent in the 2009-10. Its formulation exports increased by 15.3 per cent to Rs.2,676 crore from Rs.2,320 crore and that of APIs increased by 17.1 per cent to Rs.679 crore from Rs.580 crore.
The company managed to reduce its interest burden to Rs.79 crore from Rs.88 crore. Its taxation amount also declined to Rs.191 crore from Rs.243 crore. However, its employees cost went up sharply by 45.8 per cent to Rs.541 crore from Rs.371 crore in the previous year due to increase in manpower particularly at Indore SEZ and annual increments. . Similarly, depreciation provision moved up to Rs.264 crore as against Rs.188 crore. The rise in selling expenses is in line with the increase in export turnover.