Cipla, a Rs.10,800 crore pharma major from Mumbai, has failed to generate higher consolidated net profit during the fourth quarter ended March 2015 despite higher sales and other income. Its consolidated net profit remained flat at Rs.260 crore. EBDITA improved by 16.9 per cent to Rs.568.85 crore from Rs.486.68 crore as its other operating income improved by 24.1 per cent to Rs.112 crore. With restricted growth in profit, its EPS declined to Rs.3.24 from Rs.3.25 in the last period.
Its consolidated net sales, however, increased by 22 per cent to Rs.2,981 crore from Rs.2,443 crore. Its domestic sales increased by 20.7 per cent to Rs.1,086 crore mainly due to growth in respiratory, anti-infectives, cardiac and gastro intestinal therapies. Its exports sales went up by 22.8 per cent to Rs.1,895 crore basically due to higher formulation sales. International business contributed 64 per cent to its total net sales and Indian sales 36 per cent. Further, formulation sales contributed 93 per cent and APIs sales 7 per cent during fourth quarter.
The board of directors has recommended equity dividend of 100 per cent for the year 2014-15.
For the full year ended March 2015, Cipla's consolidated sales increased by 10.8 per cent to Rs.10,882 crore from Rs.9,826 crore in the previous year. Its domestic sales improved by 18 per cent to Rs.4,825 crore and its export sales moved by 5.6 per cent to Rs.6,058 crore. Indian business contributed 42 per cent to overall sales. New products contribution worked out to 3.2 per cent and chronic products contribution 52 per cent. It has completed licensing deals with Serum Institute for domestic market. Its APIs sales declined by 18 per cent to $113 million from $138 million.
Its North American business contributed 8 per cent to overall sales. It launched its first own label products in USA. Its Europe business contributed 4 per cent to total sales as its sales in Europe declined by 24 per cent due to declined partner business. The company entered in-licensing agreement with Gilead for manufacturing and distribution of sofosbuvir, ledipasvir and GS-5816 in 91 countries for the treatment of hepatitis C. Similarly, it entered licensing agreement with Medicine Patent Pool to allow generic manufacture of TAF and dolutegravir. Its South Africa business contributed 14 per cent to overall sales. It won tender for ARV, respiratory and newer areas like mental health, cardiovascular and women's health categories in South Africa.
Its R&D expenditure worked out to 6.2 per cent of revenue during 2014-15. Currently, 200 formulation development projects are underway. It filed 12 formulations in North America and 78 in Europe. Total international products reached at 1800. It filed 36 DMFs in Europe, North America and in other international markets. It filed 147 ANDAs and received approval for 79 ANDAs in US. Total pending approvals reached at 68.
Its consolidated net profit declined by 15 per cent to Rs.1,181 crore from Rs.1,388 crore in the previous year. Its EBDITA also declined by 3 per cent to Rs.2,327 crore from Rs.2,398 crore despite higher other operating income by 33.2 per cent to Rs.463 crore as against Rs.348 crore in the previous year.
As against the equity capital of Rs.160.59 crore its reserves & surplus increased by 7.5 per cent to Rs.10,629 crore from Rs.9,890 crore. Its inventories increased to Rs.3,781 crore from Rs.2,895 crore. Its short term borrowings went up by 53 per cent to Rs.1,392 crore from Rs.910 crore and long term borrowings declined marginally to Rs.309 crore from Rs.318 crore.