Cipla net profit down 27% on increased costs1 min read . Updated: 13 Nov 2013, 10:34 PM IST
Sales grew 13.38% to Rs2,512.39 crore
Mumbai: Cipla Ltd, the country’s third-largest drugmaker, posted a 26.6% drop in net profit to ₹ 358.06 crore for the September quarter, dragged by increased expenses on interest and material consumption, among others.
Sales grew 13.38% to ₹ 2,512.39 crore.
Cipla’s net profit, which is in line with market expectations, was impacted by a 27.9% rise in total expenses, including interest, material cost, employee benefit scheme and other expenses.
The company had raised loans for its acquisition of Cipla Medpro South Africa Ltd in July and analysts had predicted an impact on its profit due to the increased cost.
Total income rose due to growth in Cipla’s exports revenue and the consolidation of its South African subsidiary. Exports in formulation grew 14.9% to ₹ 1,219 crore, active pharma ingredient grew 17.7% to ₹ 204 crore, primarily due to growth in the anti-retroviral, anti-malaria and anti-allergic segments. Domestic sales increased by 11.6%, unlike for many of its peers, largely on account of higher sales of its anti-asthma, urology and COPD (Chronic Obstructive Pulmonary Disease) drugs.
“The company’s overall cost has increased during the quarter mainly due to expenses related to the acquisition," said Hitesh Mahida, an analyst at Fortune Equity Brokers India Ltd.
Shares of Cipla fell 2% to ₹ 412.55 on BSE on Wednesday, while the exchange’s benchmark index Sensex lost 0.43% to close at 20,194.40 points.