Cipla (CIPLA) Q4 05/06 earnings summary

Executive summary

• FY06 net sales reached Rs.2,897.41 crore; net profit rose 48% YoY to Rs.607.64 crore, supported by improved product mix, tax benefits and higher non-operating income.

• Exports reached Rs.1,513.64 crore, 50% of sales, with shipments to nearly 170 countries; annual turnover exceeded Rs.3,000 crore for the first time.

Financial highlights

• Gross sales were Rs.3,019.68 crore versus Rs.2,327.63 crore; net sales were Rs.2,897.41 crore versus Rs.2,181.26 crore.

• Other income rose to Rs.216.15 crore from Rs.155.24 crore; PBT was Rs.709.84 crore versus Rs.514.61 crore, and PAT was Rs.607.64 crore versus Rs.409.61 crore.

• EPS was Rs.20.26 versus Rs.13.66; proposed dividend was Rs.2 per share, totaling Rs.155.46 crore before dividend tax.

Outlook and guidance

• Patalganga’s new export-oriented API and formulations unit was nearing completion, with production expected to start in Q2 FY07; facility expansion was underway at Baddi.

• Plans included a large formulations facility in Goa’s SEZ and major manufacturing additions at Kurkumbh and Bangalore.

• International expansion plans included partnerships for 123 US products, over 170 European registrations filed, and approvals for over 4,000 formulations in emerging markets.

• R&D focus was to continue on new products, delivery systems, manufacturing processes and commercially scalable technologies for global markets.