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Cipla Q4 profit at Rs 153 cr versus loss last year; misses estimates

The operating profit margin expanded 100 basis points to 15.1 percent in Q4 from 14.1 percent in Q4FY17.

May 23, 2018 / 12:31 PM IST
 
 
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Drug maker Cipla posted a net profit of Rs 153.25 crore in the fourth quarter of FY18. In the same quarter last year the company reported a loss of Rs 63 crore.

Revenue for the quarter was up 3.2 percent year-on-year (YoY) at Rs 3,697.97 crore. Revenue for Q4FY17 was Rs 3,487 crore.

The operating profit margin expanded 100 basis points to 15.1  percent from 14.1 percent in Q4FY17.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 10.2 percent to Rs 558 crore.

In the result note released to the exchanges, the company noted the numbers for the quarter and full year FY18 are not strictly comparable with corresponding previous periods due to change in accounting standards after the introduction of the Goods and Service Tax (GST).

A Reuters poll of analysts estimated a net profit of Rs 356.7 crore in the fourth quarter on revenues at Rs 3,899.5 crore.

“This financial year, our focus remained on strengthening our portfolio and
deepening our presence in priority markets," said Umang Vohra, MD and Global CEO of Cipla

"We are happy that our efforts on cost and efficiency improvement helped us deliver the full year margin ahead of our guidance range. Our focus for next year will be to continue our growth trajectory in key markets and investments in portfolio for sustainable growth," Vohra added.

Vohra expressed confidence about company exceeding its 18.6 percent EBITDA margin in FY19.

The company guided for an above market average growth in revenue and said it targets $1 billion sales in India in FY19.

India business grew 13.4 percent to Rs 1,353 crore on YoY.  India constitutes around 37 percent of Cipla's revenues.

Sales of North America generics grew 4 .4 percent to Rs 646 crore.

In the year gone by the company filed for 14 new products in the US and said 69 Abbreviated New Drug Application (ANDA) is pending for approval.

The board has recommended a dividend of Rs 3 per equity share (face value Rs 2 per equity share) for the year 2017-18.

"Cipla reported disappointing Q4FY18 numbers with flat top-line and 13%
decline in adjusted earnings," said Edelweiss in its research report.

"Though domestic and South Africa businesses performed in line, total exports business, which includes US and Europe, slipped 4 percent YoY. Failure to expand the exports business profitably, despite investing heavily in it, has been a pain point for the company for many years," the report added.

Shares of Cipla gained 0.62 percent to close at Rs 523 on BSE, the benchmark Sensex gained 0.10 percent to end at 34,651.24 points.

Moneycontrol News
first published: May 22, 2018 04:28 pm

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