New Delhi: Drug major Cipla today said increased factory overheads at Indore SEZ and increase in material costs resulted in decline of net profit by 22.33% to Rs 214 crore for the fourth quarter ended 31 March, 2011, over the same period previous fiscal.
The company had posted a net profit of Rs 275.53 crore in the same period previous fiscal, Cipla said in a filing to the Bombay Stock Exchange (BSE).
“Operating margins are lower on a year on year basis due to change in product mix resulting in increase in material cost by 3% and negative contribution of Indore SEZ because of optimisation,” it added.
However, the company’s net sales for the fourth quarter rose by 22.59% to Rs 1,615.22 crore for the fourth quarter as against Rs 1,317.49 crore for the corresponding period last fiscal.
During the quarter the domestic sales grew by 15% and exports by more than 28%, it said.
The company’s net profit for the year ended 31 March, 2011 stood at Rs 967.12 crore, compared to Rs 1,081.49 crore in the last fiscal.
For the year ended 31 March, 2011, the company’s net sales stood at Rs 6,123.84 crore, compared to Rs 5,359.52 crore in the previous fiscal.
Shares of Cipla Ltd today closed at Rs 303.40 in the BSE, down 1.92% from the previous close.