During the December quarter, Cipla’s net profit fell to Rs284 crore despite growth in its sales and exports
Cipla Ltd, a pharmaceutical company said, its third quarter net profit fell 17% on higher expenditure, especially on staff, material costs, changes in product mix and research & development (R&D).
For the quarter to end-December, the pharmaceutical company said its net profit fell to Rs284 crore from Rs340 crore, while total revenues, including sales increased 22% to Rs2,581 crore from Rs2,111 crore, a year ago period.
During the quarter, Cipla’s total expenditure increased 32% at Rs2,205 crore from Rs1,675 crore, same period last year. Material cost of the company during the December quarter stood at 39.1% of net sales as compared to 37.8%, in a same period a year ago.
“Material cost has increased by about 2% mainly on account of changes in product mix, staff cost due to increase in manpower. The operating margins have decreased due to higher R&D and other expenditures,” Cipla said in regulatory filing.
Domestic sales grew by 12.6% in its December quarter to Rs1,044 crore from Rs927 crore while international sales grew 32% to Rs1,508 crore from Rs1,143.49 crore, a year ago period.
Exports of active pharmaceutical ingredients (APIs) grew by 14% in its December quarter to Rs157 crore from Rs137 crore, in a same period year ago.
“The growth in domestic revenues was largely on account of growth in respiratory, anti-infectives and cardiology, while growth in export revenues was primarily due to growth in anti-retroviral, anti-cancer, anti-allergic and anti-biotic segments,” the company said.
Cipla closed Thursday 7.7% down at Rs381 on the BSE, while the 30-share Sensex also ended the day 1.3% down at 20,193.
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