Cipla (CIPLA) Q4 07/08 earnings summary

Executive summary

• FY08 turnover reached Rs. 4,429 crore, crossing US$1 billion for the first time; reported turnover growth was 18% despite a sluggish Q1 and rupee appreciation.

• Net profit rose to Rs. 701.43 crore from Rs. 668.03 crore; the Board recommended a Rs. 2 per share dividend, totaling Rs. 155.46 crore.

Financial highlights

• Net sales were Rs. 3,997.90 crore versus Rs. 3,438.24 crore; other income was Rs. 340.31 crore versus Rs. 230.55 crore.

• PBT was Rs. 838.36 crore versus Rs. 807.98 crore; PAT was Rs. 701.43 crore versus Rs. 668.03 crore.

• EPS was Rs. 9.02 versus Rs. 8.61; gross profit before depreciation and tax was Rs. 969 crore versus Rs. 911 crore.

• Exports were Rs. 2,102 crore, up 18%; technology know-how and fees earned Rs. 153 crore.

Outlook and guidance

• Domestic pharmaceutical market growth was 15%; continued brand-building and marketing were priorities for sustaining domestic leadership.

• Overseas business remained a focus, with partners in over 180 countries and ~5,500 registered products; a stronger US dollar was expected to ease export pressure near term.

• Rising input prices and shortages were expected to adversely affect production schedules and margins; alternative sourcing and higher inventory levels were being pursued.