X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Exports propel Cipla topline 47% - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jan 30, 2001

    Exports propel Cipla topline 47%

    Cipla has reported a stupendous 53.8% growth in the net profit in the third quarter of the current year on the back of a 47% growth in the topline. The topline growth has outpaced the domestic pharmaceutical growth of 11% by a mile. This growth has been led primarily by a 150% growth in exports, which also partially explains the effective tax rate of 26%. As far as the domestic antibiotic market is concerned Cipla has attacked the fiercely competitive market by way of unbranded generics and this strategy has succeeded to a great extent.

    (Rs m) 3QFY00 3QFY01 Change
    Sales 1,872 2,756 47.3%
    Other Income 72 82 13.0%
    Expenditure 1,435 2,070 44.2%
    Operating Profit (EBDIT) 437 687 57.3%
    Operating Profit Margin (%) 23.3% 24.9%  
    Interest 3 3  
    Depreciation 38 40 6.7%
    Profit before Tax 468 725 54.9%
    Other Adjustments   -  
    Tax 120 190 58.3%
    Profit after Tax/(Loss) 348 535 53.8%
    Net profit margin (%) 18.6% 19.4%  
    Earnings per share* 23.2 35.7  

    Exports are likely to get a further boost after October 2001 when the company starts exporting omeprazole, the bulk drug for an anti–ulcer drug to Andryx Corporation, which has bagged a six month period of exclusivity after the patent of Astra expires in October 2001. The company's proposal to export its anti–AIDS drug to the original patent holders viz Glaxo and Boeringer Ingelheim does not however, seem to have cut much ice although the management is still hopeful of its success. The South African government seems unlikely, at this stage to impose a compulsory licensing regime which has possibly prompted Cipla to approach the original patent holders.

    As far as R & D is concerned, the company is working on two New Chemical Entities which are undergoing trials in New Zealand. The company has however conciously chosen a different route to R & D and that is to develop better processes for the manufacture of difficult to synthesise molecules. It is offering these intermediates and bulks to innovators and major generic companies. For this purpose it has filed 33 Drug Master Files in areas such as asthma, cardiology and oncology.

    The stock quotes at Rs 1,100 which implies an earning multiple of 30.8 times 3QFY01 annualised earnings.

     

     

    Equitymaster requests your view! Post a comment on "Exports propel Cipla topline 47%". Click here!

      
     

    More Views on News

    Cipla: Operating Margins Improve (Quarterly Results Update - Detailed)

    Mar 8, 2017

    Cipla has announced its results for the December quarter (1QFY17) results. The company has reported a decline of 6.4% YoY in sales while profits were down by 43.7% YoY.

    Cipla: Weak Quarter, Positive Triggers Ahead (Quarterly Results Update - Detailed)

    Sep 19, 2016

    Cipla has announced its results for the June quarter (1QFY17) results. The company has reported a decline of 6.4% YoY in sales while profits were down by 43.7% YoY.

    Sun Pharma: Bottomline Slips into the Red Amidst Challenging Environment (Quarterly Results Update - Detailed)

    Aug 14, 2017

    A challenging environment and one-time expense pushes Sun Pharma into a loss in the first quarter.

    Lupin: Bigger Challenges or Bigger Margin of Safety? (Quarterly Results Update - Detailed)

    Aug 14, 2017

    GST impact coupled with price erosion in US leads to lower profits for the quarter.

    Dr Reddy's: US Pressure Continues to Haunt (Quarterly Results Update - Detailed)

    Aug 8, 2017

    Profits plunge due to higher raw material costs.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    CIPLA SHARE PRICE


    Aug 18, 2017 (Close)

    TRACK CIPLA

    CIPLA - TEVA PHARMA COMPARISON

    Compare Company With Charts

    COMPARE CIPLA WITH

    MARKET STATS