Cipla (CIPLA) Q4 10/11 earnings summary

Executive summary

• FY2010-11 operating income rose 12% YoY; domestic turnover increased 12% and export income 16%. PAT was ₹960 crore, compared with ₹1,081 crore in FY2010, which included a one-time brand sale.

• Profit before exceptional items and tax was ₹1,151 crore, versus ₹1,230 crore in FY2010; the prior year included ₹95 crore from the sale of a brand and related rights.

Financial highlights

• Standalone net sales were ₹6,135 crore versus ₹5,360 crore; sales and other income totaled ₹6,434 crore versus ₹5,713 crore.

• Standalone PAT was ₹960 crore versus ₹1,081 crore; reported EPS was ₹11.96 versus ₹13.69, while EPS before exceptional items was ₹11.96 versus ₹12.49.

• Consolidated profit before exceptional items and tax was ₹1,162 crore versus ₹1,231 crore; consolidated PAT was ₹967 crore versus ₹1,083 crore.

• Consolidated EPS was ₹12.32 versus ₹13.70; consolidated revenue after excise was ₹6,130 crore versus ₹5,360 crore.

Outlook and guidance

• New products and dosage forms were cited as growth opportunities; strategic focus is increasing in oncology and neuropsychiatry, with biotechnology development progressing through regulatory processes.

• International business strategy is being consolidated and rationalized to optimize value from technology and products; partnerships for product development and supply in developed markets continue.

• R&D plans prioritize new products and drug-delivery systems; R&D expenditure was ₹285 crore, around 5% of turnover.