Cipla’s PAT drops by 27% even as sales grow 14%

Mumbai-based drug maker Cipla Ltd’s revenue grew 14 per cent to Rs 2463 crore for the quarter ended September 30, 2013, compared with Rs 2,167 crore last year.

However, even as the revenue of the company grew, its PAT took a hit by 27 per cent at Rs 358 crore compared with Rs 488 crore last year.

This could directly be a result of EBITDA of the company decreasing by 20 per cent at Rs 564 crore and material costs of the company increasing to 38 per cent of its net sales compared with 35 per cent in the same period last year.  

Cipla, which is of the country’s largest generic drug makers, saw growth in revenue from both its domestic and international businesses. The domestic revenue of the company grew by 12 per cent to Rs 1040 crore from Rs 932 crore for Q2 FY13.

According to the company, the rise in revenues for domestic business was on the account of growth in anti-asthma, urology and COPD therapy segments.

The exports business of the company saw growth in formulations and active pharmaceutical ingredients (API) businesses. The exports of formulations business grew 15 per cent to Rs 1219 crore while exports of APIs rose 18 per cent to Rs 204 crore for Q2 FY14. This was on the back of growth in anti-retroviral, anti-malaria and anti-allergic segments.

Cipla has been focusing on growing its business overseas. Earlier in July, the company acquired its distribution partner in South Africa, Cipla Medpro for Rs 2707 crore, one of the largest acquisitions by an Indian company there.

In an Annual General Meeting held in August, chairman of the company YK Hamied told shareholders that he is planning to strengthen the firm’s international footprint. Cipla is targeting $5 billion in revenue by 2020, Hamied said.

(Edited by Joby Puthuparampil Johnson)

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