Cipla, the third largest pharma company in India with sales of Rs.6,100 crore plus, has posted marginally lower net profit during the first quarter ended June 2011 on account of higher employees cost, depreciation, interest and taxation provisions. The net profit stood at Rs.253.34 crore as against Rs.257.42 crore in the similar period of last year. The net sales increased by 8.6 per cent to Rs.1,550 crore from Rs.1,427 crore. Despite significant volatile movements in price movements on stock exchanges, Cipla scrip maintained its uptrend today and closed with a gain of Rs.2.25 at Rs.308.40 on BSE.
The company's domestic sales increased by 10.1 per cent to Rs.743.64 crore from Rs.675.15 crore and its exports moved up by 8.4 per cent to Rs.830.17 crore from Rs.765.88 crore. Exports contributed 52.7 per cent to its total sales during the first quarter ended June 2011 as against 53.1 per cent in the last period. Its formulations export improved by 5.3 per cent to Rs.658.86 crore from Rs.625.72 crore and that of APIs & others improved strongly by 22.2 per cent to Rs.171.31 crore from Rs.140.16 crore.
The operating margins have increased significantly mainly due to better utilization of Indore SEZ and changes in product mix. The company's EBDITA moved up 7.4 per cent to Rs.394.39 crore from Rs.367.35 crore. The employees cost went up by 24.5 per cent to Rs.171.23 crore from Rs.24.5 crore. Its depreciation provision moved up by 28.2 per cent to Rs.70.25 crore from Rs.54.82 crore mainly on account of addition of fixed assets at its Indore SEZ factory. Its tax provision increased by 21 per cent to Rs.66.55 crore from Rs.55 crore in the corresponding period of last year as the tax benefits on EOUs was expired during the quarter. The interest burden of Rs.4 crore also impacted its bottom line.