Cipla Q4 net rises 81 per cent; revenues up 67 per cent

Cipla, the most valuable pharma company in terms of market capitalisation, has reported excellent results for the fourth quarter. The company's sales growth in both export and domestic markets are way above other major players. Though there is some pressure on margins because of higher input costs, the company managed to keep other costs under control.

For the quarter ended 31 March 2006, Cipla has reported a net profit of Rs190.77 crore or Rs6.36 per share, an increase of 80.68 per cent when compared to Rs105.58 crore or Rs3.52 per share reported for the same quarter of previous year. Total revenues for the quarter increased 66.66 per cent to Rs917.35 crore from Rs550.43 crore.

Export of active pharma ingredients (API) rose an incredible 190 per cent during the quarter while exports of formulations increased 30.4 per cent. Domestic sales recorded a much-improved 56.4 per cent growth rate compared to the same quarter of previous year. Operating margins for the quarter declined nearly 500 basis points when compared to the fourth quarter of previous year to 20.7 per cent of net sales from 25.59 per cent.

The drop in margins was mostly on account of higher manufacturing costs which increased 94.38 per cent when compared to the prior year quarter. The company managed to limit increase in staff costs to 32.66 per cent while other expenses rose 50.18 per cent.

When compared to the third quarter ended December 2005, profits have increased 8.82 per cent on revenue growth of 7.28 per cent. Operating margins were 20.36 per cent for the third quarter.

For the full year 2005-06, the company's net profit increased 46.5 per cent to Rs600.08 crore or Rs20.01 per share from Rs409.61 crore or Rs13.66 per share. Total revenues increased 33.4 per cent to Rs3,116.82 crore from Rs2,336.48 crore.