Cipla, the third largest pharma company with net sales of of Rs.6,135 crore, has achieved modest growth in profits and sales during the second quarter ended September 2011. Its consolidated net profit went up by 17.5 per cent to Rs.309 crore from Rs.263 crore in the corresponding period of last year. Its consolidated net sales improved by 9.6 per cent to Rs.1,732 crore from Rs.1,580 crore. The earnings per share improved to Rs.3.85 from Rs.3.27 in the last period.

Material cost for the quarter is lower by Rs.37 crore mainly due to improved realization, reduction in input costs of certain category of products and changes in product mix. In addition, there has been higher cost efficiencies due to increased utilization of Indore SEZ facilities. Consequently, operating margins and profits after tax have increased by 2 per cent and 1 per cent. Tax for the current quarter went up sharply to Rs.85 crore from Rs.56 crore in the last period, mainly due to expiry of tax benefits on EOUs.

Cipla's domestic sales improved by 12 per cent during the quarter to Rs.847 crore from Rs.756 crore in the similar period of last year. Its exports moved up by 9.5 per cent to Rs.911 core from Rs.832 crore, contributing 51.8 per cent to total sales as against 52.4 per cent in the previous period. Formulations exports increased by 13.2 per cent to Rs.752 crore from Rs.664 crore. However, its exports of APIs and others declined by 5.2 per cent to Rs.159 crore from Rs.168 crore.

For the first half ended September 2011, Cipla's net sales increased by 9.1 per cent to Rs.3,282 crore from Rs.3,007 crore in the same period of last year. Its EBDITA improved by 14.1 per cent to Rs.856 crore from Rs.751 crore and net profit by I.1 per cent to Rs.562 crore from Rs.520 crore in the similar period of last year. Its domestic sales increased by 11.1 per cent to Rs.1,591 crore and its exports went up by 9 per cent to Rs.1,741 crore, contributing 52.3 per cent to its total sales.