Cipla, a Rs.8,000 crore plus Mumbai based fifth largest pharma company in India, has received minor setback during the fourth quarter ended March 2013 on account of higher interest and taxation. Its net profit declined by 8.2 per cent to Rs.268 crore from Rs.292 crore in the corresponding period of last year. EBDITA improved only by 7.1 per cent to Rs.468 crore from Rs.437 crore. Its net sales improved marginally by 5.1 per cent to Rs.1,906 crore from Rs.1,814 crore. With fall in profits, its EPS also declined to Rs.3.33 from Rs.3.63 in the last period.
The board of directors has recommended equity dividend of 100 per cent for the year 2012-13 amounting to Rs.160.53 crore. The company announced the results after close of trading on stock exchanges. The lower profit in the quarter put pressure on price movement of Cipla scrip which declined by over 3.4 per cent to Rs.387.65 in the morning session on BSE today.
The company's domestic sales increased by 5.2 per cent to Rs.793 crore from Rs.754 crore and its total exports moved up 4 per cent to Rs.1,128 crore from Rs.1,085 crore. Domestic sales improved largely on account of growth in anti-asthma, anti-biotics/infectives, and cardiovascular therapy segments. Exports of formulations improved by 11.5 per cent to Rs.954 crore from Rs.855 crore. However, exports of APIs and other declined sharply by 24 per cent to Rs.175 crore from Rs.230 crore in the similar quarter of last year. Export as percentage of sales worked out to 58.7 per cent as against 59 per cent in the previous period. APIs sales contributed 10 per cent and formulations 90 per cent in aggregate sales.
Its interest cost during the quarter under review went up to Rs.17 crore from Rs.2 crore and taxation provisions amounted to Rs.104 crore as compared to Rs.73 crore in the last period. Employees cost increased by 40.1 per cent to Rs.255 crore from Rs.182 crore.
For the full year ended March 2013, Cipla's consolidated net sales increased by 18.1 per cent to Rs.8,087 crore from Rs.6,848 crore in the previous year. Its net profit moved up 35.1 per cent to Rs.1,545 crore from Rs.1,144 crore. The company shown an income of Rs.40 crore as exceptional item representing profit on sale of investment in Desano Holdings Ltd by subsidiaries. Its other income improved by 32.6 per cent to Rs.415 crore from Rs.313 crore. EBDITA has taken a jump of 34.6 per cent to Rs.2,420 crore from Rs.1,798 crore.
Its employees cost went up by 34.2 per cent to Rs.1,036 crore from Rs.772 crore. However, its interest cost declined by 11.6 per cent to Rs.34 crore from Rs.38 crore. The taxation provision increased significantly by 77.2 per cent to Rs.544 crore from Rs.307 crore.
Its domestic sales during the year ended March 2013 increased by 14.6 per cent to Rs.3,681 crore from Rs.3,213 crore and its exports improved by 19.9 per cent to Rs.4,426 crore from Rs.3,692 crore. Exports of formulations increased by 27.1 per cent to Rs.3,772 crore from Rs.2,968 crore. However, its exports of API & others declined by 9.7 per cent to Rs.654 crore from Rs.724 crore. Exports worked out to 54.6 per cent of its total sales as compared to 53.5 per cent in the previous year.
As against the equity capital of Rs.160.58 crore, its reserves and surplus amounted to Rs.8,858 crore as compared to Rs.7,478 crore in the previous year, a growth of 18.5 per cent.
Meanwhile, Cipla has appointed Rajesh Garg as global chief financial officer with effect from June 3, 2013 and decided to issue 5,22,194 stock options to Garg. in accordance with the provisions of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. The said options exercisable into equity shares will be granted by the Compensation Committee at an exercise price equal to 50 per cent discount to the prevailing market price. The company will seek approval of shareholders to the said proposal at the ensuing AGM.