Cipla (CIPLA) Q4 12/13 earnings summary

Executive summary

• FY13 delivered strong growth: standalone revenue from operations rose >17% YoY to ₹8,295 crore and PAT increased >34% to ₹1,507 crore.

• Higher operating margin reflected improved realizations, product mix and stronger US contribution from Escitalopram; transformation work targeted simpler operations and better delivery.

Financial highlights

• Standalone net revenue from operations was ₹8,202.42 crore vs ₹6,977.50 crore; total income was ₹8,431.55 crore vs ₹7,125.80 crore.

• Standalone PBT rose to ₹2,011.86 crore from ₹1,421.46 crore; PAT reached ₹1,507.11 crore from ₹1,123.96 crore.

• Consolidated net revenue from operations was ₹8,279.33 crore vs ₹7,020.71 crore; PAT was ₹1,544.85 crore vs ₹1,144.24 crore.

• Consolidated PAT excluding the ₹39.77 crore exceptional gain was ₹1,505.08 crore; EPS was ₹18.75 before and ₹19.24 after the exceptional item, vs ₹14.25.

Outlook and guidance

• Indian pharmaceutical market growth was forecast at 14–16% CAGR over five years; Indian GDP growth was projected at 6.4% for FY14.

• Exports contributed >50% of total revenue and were expected to grow further; priorities included differentiated products, in-licensing and direct presence in key markets.

• Future investment priorities included product pipeline and talent; Patalganga API upgrades were expected to begin operations in FY14.