Cipla’s third quarter results are satisfactory but not inspiring. The company has reported a net profit of Rs.348 million, a growth of hardly 4%. And this despite a 14.8% increase in the topline.
Profit before Tax
Profit after Tax
Net profit margin
This is primarily due to the company’s dependence on antibiotics. Over 40% of the company’s turnover accrues from Antibiotics. Most of these – ciprofloxacin (Ciplox), norfloxacin (Norflox), amoxycillin (Novamox) have seen poor sales growth in the last quarter. The fact that many of its brands are on the DPCO list (almost 55% of its turnover come from products under price control) is a drawback, as price hikes to pass on escalating cards are possible only when approved by the government.
The company is targeting an annual turnover of Rs 7.25 bn and a bottomline of 1.28 bn (EPS: Rs.21.5) for FY2000. It plans to launch three anti–asthma products in the current quarter including a salmeterol–fluticasone dry powder dry powder inhaler and buticort (budesonide) inhaler free from choloroflurocarbons. Besides, biological studies are on for a novel drug discovery system of the anti–ulcerant omeprazole which is likely to be licensed out to a multinational generics player.
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