Cipla (CIPLA) Q4 11/12 earnings summary

Executive summary

• FY12 standalone revenue from operations ₹7,074.73 crore; PAT ₹1,123.96 crore, up 17% YoY. Operating margin as a share of total revenue rose ~2 percentage points, supported by lower material costs and improved realizations.

• International markets generated more than 53% of total income; domestic turnover grew 14% to ₹3,213 crore.

• Consolidated PAT was ₹1,144.24 crore versus ₹989.57 crore; consolidated EPS was ₹14.25 versus ₹12.32.

Financial highlights

• Standalone PBT rose to ₹1,421.46 crore from ₹1,151.39 crore; PAT was ₹1,123.96 crore versus ₹960.39 crore.

• Standalone net revenue from operations was ₹6,977.50 crore versus ₹6,331.09 crore; other income was ₹148.30 crore versus ₹91.64 crore.

• Consolidated net revenue from operations was ₹7,020.71 crore versus ₹6,323.84 crore; PBT was ₹1,447.81 crore versus ₹1,162.49 crore.

• Standalone R&D expenditure was ₹323.83 crore, around 5% of total turnover; revenue expenditure was ₹306.43 crore and capital expenditure ₹17.40 crore.

Outlook and guidance

• Additional R&D facilities at Vikhroli and Patalganga were expected to commence operations in FY13; new API facilities at Patalganga, Bengaluru and Kurkumbh were expected to be completed in FY13.

• The R&D and API projects had estimated combined investment of ~₹500 crore.

• Bio-similar clinical trials were expected to finish in 2–3 years, followed by launches in India; stem cell-based product launches were expected in 3 years.

• India’s projected economic growth was 7.6% for FY13, following 6.9% growth in FY12.