Cipla, a Rs.9,825 crore fifth largest Indian pharma company, has suffered setback during the second quarter ended September 2014 and its consolidated net profit declined sharply by 16.5 per cent to Rs.299 crore from Rs.358 crore in the corresponding period of last year. Its EBDITA also moved down by 9.1 per cent to Rs.582 crore from Rs.640 crore. EPS worked out to Rs.3.72 as against Rs.4.46 in the last period.

The company's consolidated net sales grew only by 5.9 per cent to Rs.2,630 crore from Rs.2,483 crore in the similar quarter of last year. Domestic sales improved by 20.5 per cent to Rs.1,251 crore from Rs.1,039 crore on account of growth in pediatrics, respiratory, spectracare and urology therapies. Domestic sales worked out to 47 per cent of total sales. Its formulations export remained almost stagnant at Rs.1,243 crore as compared to Rs.1,039 crore and APIs export declined sharply by 34 per cent to Rs.136 crore from Rs.206 crore. Formulations sales contributed 95 per cent of its total sales.

For the first half ended September 2014, Cipla's consolidated net sales increased by 9.6 per cent to Rs.5,277 crore from Rs.4,815 crore in the same half of last year. Its net profit declined by 29.7 per cent to Rs.593 crore from Rs.843 crore. Its employees cost went up by 37.7 per cent to Rs.953 crore from Rs.692 crore. Its other income declined by 55 per cent to Rs.64 crore from Rs.143 crore. Its tax provision declined by 29.8 per cent to Rs.203 crore from Rs.289 crore.

Pursuant to acquisition of 75 per cent additional stake, Mabpharm Pvt Ltd, hitherto an Associate, became a subsidiary of the company in July 2014. Accordingly, the financial results for the current periods includes the relevant results of Mabpharm.

With lower profit, Cipla scrip opened lower at Rs.615 today on BSE as against its previous close of Rs.624.15 and was under pressure in the morning session.

Cipla signed joint venture agreement with distributor in Iran for setting up a manufacturing facility in Iran. Cipla in investing around Rs.225 crore in next three years for a stake of 75 per cent. Cipla entered into in-licensing agreement with Gilead for manufacturing Sofosbuvir, Ledipasvir under Cipla's brand name in 91 countries. Further, it also entered agreement with Medicine Patent Pool to allow generic manufacture of tenofovir alafenamide (TAF) which will allow generic manufacture of TAF in 112 developing countries. Cipla Medpro and Teva Pharmaceutical entered marketing collaboration.

Cipla launched salmeterol fluticasone in Germany, Sweden, Slovakia and Croatia. It entered distribution collaboration with DRL for levalbuterol in US. It is executing South Africa tender for respiratory and oral solids. Currently, the company is developing 250 formulations projects and it filed 18 for Europe and North America. It entered out-licensing deal with Salix for 'Rifaximin Complexes' patent family controlled by Cipla.

Its standalone net profit for the first half ended September 2014 declined by 21.5 per cent to Rs.668 crore from Rs.851 crore. Its standalone net sales improved 2.7 per cent to Rs.4,751 crore from Rs.4,628 crore.

The company appointed Punita Lal and Dr Nachiket Mor as independent directors.