Cipla (CIPLA) Q4 14/15 earnings summary

Executive summary

• FY 2014-15 consolidated revenue reached ₹11,345 crore, up 11.5% YoY; profit for the year fell 15% to ₹1,181 crore amid mix changes and higher R&D and talent investment.

• Corrective actions supported robust Q4 revenue momentum, with management expecting that momentum to continue into FY 2015-16.

• The year focused on strengthening operations, expanding global market presence, and investing in product development and capabilities.

Financial highlights

• Consolidated revenue from operations was ₹11,345.44 crore versus ₹10,173.39 crore in FY 2013-14; consolidated PBT was ₹1,654.25 crore versus ₹1,880.04 crore.

• Consolidated profit for the year was ₹1,180.77 crore versus ₹1,388.41 crore; basic EPS was ₹14.71 versus ₹17.29 and diluted EPS ₹14.66 versus ₹17.27.

• Consolidated EBITDA was ₹2,162 crore, with a 19.1% FY 2014-15 EBITDA margin, supported by price/mix, licensing deals and cost management.

• Domestic business revenue rose 18% to ₹4,825 crore; exports increased 5.6% to ₹6,058 crore.

Outlook and guidance

• Management expected Q4 FY 2014-15 growth momentum to continue in FY 2015-16 and prioritized delivery of financial commitments, pipeline launches and growth strategies.

• More than 80% of critical launches were on track; priorities included strengthening manufacturing, supply chain and procurement, integrating signed deals, and simplifying processes and systems.

• Over 200 development projects were in progress; more than 70 products were added to the API pipeline, with effects from the new portfolio expected from 2017.