Cipla Q1 net profit up 120% to Rs651 crore
Profit increased from Rs295 crore in the same period last year on strong growth in formulation exports
Mumbai: Cipla Ltd posted a consolidated net profit of ₹ 651 crore for the quarter ended 30 June, against ₹ 295 crore in the same period last year, on strong growth in formulation exports.
Total income increased to ₹ 3,852 crore from ₹ 2,720 crore a year ago.
Exports of formulations increased 78.5% to ₹ 2,174 crore during the three months ended June, from ₹ 1,218 crore a year ago. Exports of active pharmaceutical ingredients (APIs) increased by 47% to ₹ 206 crore.
Domestic sales in the June quarter grew 8.4% to ₹ 1,397 crore, from ₹ 1,289 crore in the year-ago period, on account of increased sales in respiratory, anti-infective, cardiac and gastro-intestinal categories, stated a press release. Material cost for the June quarter came in at 32.5% of income from operations, against 37.7% a year ago.
The group posted a net profit of ₹ 1,181 crore for the year ended 31 March, against ₹ 1,388 crore in 2013-14. Total income increased from ₹ 10,439 crore in 2013-14 to ₹ 11,511 crore in 2014-15.
On Friday, shares of Cipla went up 2.06% to ₹ 740.50 on BSE, while the benchmark Sensex gained 1.88% to close at 28,067.31 points.
Last month, Cipla had received investment from FIL Capital Investments Mauritius II Ltd, the investment arm of Fidelity Growth Partners India, in its newly formed consumer healthcare subsidiary.
Through Cipla Consumer Healthcare, the company has re-entered the fast-growing over-the-counter (OTC) healthcare market in India. In 2010, Cipla exited the OTC market by selling its emergency contraceptive brand i-Pill to Piramal Healthcare Ltd for ₹ 95 crore.
The Cipla board had approved the divestment of its consumer healthcare business to a wholly owned subsidiary for a consideration of ₹ 10.5 crore. Cipla’s consumer healthcare division recently launched its first product Nicotex, a gum used to help smokers quit.
The consumer healthcare division reported sales of ₹ 34.88 crore, or about 0.3% of total revenue, in the year ended 31 March.
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