Cipla (CIPLA) Q4 13/14 earnings summary

Executive summary

• FY14 consolidated revenue crossed ₹10,000 crore, rising 21.8% YoY; EBITDA was ₹2,133 crore, while profit for the year fell 10.1% to ₹1,389 crore.

• Growth was supported by India, South Africa, Europe, international markets and API; operating margin declined amid product mix, higher R&D and talent investment.

Financial highlights

• Consolidated revenue from operations was ₹10,218 crore versus ₹8,388 crore in FY13; total exports rose 25.0% to ₹5,659 crore and domestic operations grew 14.7% to ₹4,094 crore.

• Consolidated profit before tax was ₹1,880 crore versus ₹2,095 crore; profit for the year was ₹1,388 crore versus ₹1,545 crore.

• Standalone revenue from operations, net of excise, was ₹9,380 crore; profit for the year was ₹1,388 crore versus ₹1,507 crore.

• Recommended dividend of ₹2 per share, totaling ₹160.58 crore, subject to shareholder approval.

Outlook and guidance

• FY15 priorities: reinforce India and South Africa, build a front-end presence in select international markets, and launch late-stage products, particularly European respiratory products.

• More than 80% of critical launches were on track; the three-year project pipeline included over 200 formulation development projects.

• Planned continued R&D investment, higher filing intensity, disciplined cost management, portfolio simplification and stronger R&D, regulatory, quality and manufacturing capabilities.