Cipla’s Third Quarter Profit Rises 44%, Fund Raising Plans Approved
The drugmaker reported third quarter earnings in line with estimates.
Cipla Ltd. registered nearly a 44 percent rise in profit in the October-December quarter of the current financial year. The net profit stood in line with analyst estimates.
Net profit jumped Rs 374.8 crore from Rs 260.6 crore in the same period a year ago, the pharmaceutical company said in a stock exchange filing. The Bloomberg consensus estimate stood at Rs 364 crore.
Consolidated net sales rose 15.6 percent to Rs 3,550.2 crore from Rs 3,069.9 crore a year earlier. Cipla reported an other income of Rs 153.49 crore during the quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 46 percent to Rs 677.5 crore, while EBITDA margin expanded by 380 basis points to 18.5 percent compared to 14.69 percent in the year ago period.
Segmental Performance
- Revenue for the pharmaceutical business grew 15.54 percent to Rs 3,622.52 crore compared to Rs 3,135.3 crore in the year ago period.
- Revenue from new ventures increased 60.2 percent to Rs 25.15 crore as against Rs 15.7 crore.
The company also divested its 16.7 percent stake in Chase Pharmaceutical Corporation to Allergan Plc. The result for the quarter includes a gain on sale of investment of Rs 121 crore.
The management expects to continue to build a strong respiratory franchise in the company’s key markets.
The trend of improvement in profitability in the last 3 quarters reflect our determination towards building an operationally efficient and sustainable organization. The approval of Sereflo™ in U.K. and Albuterol filing in U.S. are key milestones for us and we will continue to invest in building a strong respiratory franchise in our key markets.Umang Vohra, Managing Director And Global CEO, Cipla
Segmental Revenues
- Revenues from the company's India business grew 19 percent on a year-on-year basis to Rs 1,408 crore compared to Rs 1,182 crore last year.
- Revenues from North America grew 127 percent to Rs 662 crore from Rs 292 crore in the year ago period.
- South Africa was the other key market with revenues seeing a growth of 18 percent to Rs 495 crore as against Rs 419 crore last year.
- Revenues from other Emerging Markets saw a decline of 16 percent to Rs 744 crore compared to Rs 890 crore in December 2015.
The company’s board has approved plans to raise funds worth up to Rs 2,000 crore via issue of equity shares or Foreign Currency Convertible Bonds (FCCBs). The board also approved raising funds worth Rs 2,000 crore via issue of non-convertible debentures. The fund raising will be subject to shareholder and regulatory approval.
Shares of the drugmaker were trading lower by 0.6 percent at Rs 599.70.