Cipla (CIPLA) Q4 08/09 earnings summary

Executive summary

• FY09 turnover exceeded Rs.5,000 crore, up 22%; exports grew 30% and domestic sales 15%, while PAT rose 11% to Rs.776.81 crore.

• Profit growth was moderated by foreign-exchange hedging effects; the year included a net FX charge of Rs.228.37 crore versus a Rs.67.08 crore credit in FY08.

Financial highlights

• Sales and other income rose to Rs.5,326.77 crore from Rs.4,338.21 crore; net sales were Rs.4,960.60 crore versus Rs.3,997.90 crore.

• PBT increased 8% to Rs.901.31 crore; PAT increased 11% to Rs.776.81 crore, from Rs.701.43 crore.

• EPS was Rs.9.99 versus Rs.9.02; proposed dividend was Rs.2 per share, totaling Rs.155.46 crore.

• Technical know-how fees reached Rs.217.75 crore, up 42%; export incentives were Rs.55.94 crore.

Outlook and guidance

• Organic growth opportunities, stronger working capital and possible debt retirement were identified as intended uses for a proposed securities issue of up to Rs.1,500 crore.

• Indore SEZ validation batches were planned for FY10, with commercial production expected in the following year.

• International expansion strategy relies on product registrations, strategic partnerships and technical know-how; exports span more than 180 countries.