Cipla, the fifth largest Indian pharma company with net sales of Rs.13,350 crore plus, has posted lower consolidated net profit during the second quarter ended September 2016. Its consolidated net profit declined by 34.8 per cent to Rs.354 crore from Rs.543 crore in the corresponding period of last year. Its EBIDTA also declined by 13.2 per cent to Rs.708 crore from Rs.816 crore. With lower profit growth, EPS declined to Rs.4.41 against Rs.6.76 in the last period. The integration plan of InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc. is on track and label transition nearing completion.

The consolidated net sales increased by 8.7 per cent to Rs.3,672 crore from Rs.3,379 crore in the similar quarter of last year. Its sales in North America increased by 38 per cent to Rs.660 crore from Rs.480 crore and contributed 18 per cent to its total sales. It launched 6 new products in North America. The figures are not strictly comparable as FY16 includes Esomeprazole profit share while FY17 includes Invagen revenues. Its domestic sales increased by 21 per cent to Rs.1,467 crore from Rs.1,213 crore and contributed 39 per cent to its sales. The company received setback in Europe and its sales declined by 27 per cent to Rs.116 crore from Rs.159 crore. The sales in emerging market also declined by marginally to Rs.845 crore from Rs.853 crore. Further, its global API sales declined by 50 per cent to Rs.110 crore from Rs.221 crore. The sales in South Africa increased only by 3 per cent to Rs.459 crore from Rs.446 crore.

Its R&D expenditure increased to 8 per cent of revenues, in-line with its guidance of 7-8 per cent. The company filed 12 ANDAs with US FDA and set to file 20-25 ANDAs in FY17.  It continued investment in development of complex and differentiated products along with regular portfolio.

Umang Vohra, managing director and Global CEO, said, “We are pleased with our performance during the quarter with all our key deliverables measuring up in-line with the guidance. The performance reflects improvement in the quality of the base business, endorsing our strategic intent of investing in the future through increased R&D efforts. We continue to stay focused on building operational efficiencies and strengthening our presence in priority markets.”

For the first half ended September 2016, Cipla's net sales remained flat at Rs.7,228 crore against Rs.7,171 crore in the similar period of last year. Its international sales declined by 6 per cent to Rs.4,201 crore and domestic sales improved by 12 per cent to Rs.3,027 crore. Its domestic sales contributed 40 per cent to its net sales followed by Emerging markets 22 per cent, North America 18 per cent, South Africa 12 per cent, and Europe 3 per cent. Its net profit declined sharply by 41.9 per cent to Rs.693 crore from Rs.1,192 crore. EPS declined to Rs.8.63 from Rs.14.85 in the last period.