Cipla (CIPLA) Q4 97/98 earnings summary

Executive summary

• FY98 turnover reached Rs 514.43 crore, up 13% YoY; PAT rose 44% to Rs 101.97 crore, supported by product-mix rationalisation, productivity gains, lower interest and cost control.

• Exports of Rs 72.81 crore grew 18% YoY; high-value, high-technology products contributed substantially to profitability.

Financial highlights

• Sales, net of returns, were Rs 514.43 crore versus Rs 451.89 crore; sales and other income totalled Rs 541.02 crore versus Rs 477.94 crore.

• PBT was Rs 134.97 crore versus Rs 102.75 crore; PAT was Rs 101.97 crore versus Rs 70.75 crore.

• Gross profit before depreciation and tax was Rs 143.66 crore versus Rs 110.74 crore; depreciation was Rs 8.69 crore and tax Rs 33.00 crore.

• Interest expense fell to Rs 2.44 crore from Rs 10.50 crore; material cost was Rs 240.91 crore versus Rs 219.68 crore.

Outlook and guidance

• Plans prioritised consolidation and rationalisation, leveraging technological capabilities, R&D, skilled employees and international alliances to sustain steady, structured growth.

• R&D priorities included anticancer, antibacterial, antiasthmatic, antidepressant, antihistamine drugs and natural products; several molecules remained in advanced development.

• Sophisticated export products under development were expected to support the international-market position.