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.
Cipla: Quarter Impacted by One-Offs - Views on News from Equitymaster
StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Cipla: Quarter Impacted by One-Offs
Apr 6, 2016

Cipla has announced its 3QFY16 results. The company has reported 15.3% YoY and 4.7% YoY growth in sales and net profits respectively. Here is our analysis of the results.

Performance summary

  • Net sales grew by 15.3% YoY. The growth was driven by formulations business, and also included supply contract of Esomeprazole.
  • The operating profits declined by 18.1% YoY, as margins contracted by 5.4% to 14.6% in 3QFY16.
  • Net profits, however, managed to grow by 5% YoY during the quarter on account of a substantial fall in tax expenses.

Financial performance: A snapshot

(Rs m) 3QFY15 3QFY16 Change 9HFY15 9HFY16 Change
Net sales 26,247 30,273 15.3% 79,017 101,658 28.7%
Other operating income 1,408 793 -43.7% 3,510 2,459 -29.9%
Expenditure 22,115 26,528 20.0% 65,986 81,296 23.2%
Operating profit (EBDITA) 5,539 4,537 -18.1% 16,542 22,821 38.0%
EBDITA margin (%) 20.0% 14.6% 20.0% 21.9%
Other income 407 793 95.0% 1,044 1,542 47.7%
Interest (net) 447 230 -48.7% 1,249 1,246 -0.2%
Depreciation 1,216 1,375 13.1% 3,690 4,002 8.5%
Minority interest 59 174 195.8% 463 429 -7.4%
Profit before tax 4,224 3,552 -15.9% 12,183 18,686 53.4%
Tax 944 120 -87.3% 2,970 4,435 49.3%
Profit after tax/(loss) 3,279 3,432 4.7% 9,212 14,251 54.7%
Net profit margin (%) 11.9% 11.0% 11.2% 13.7%
No. of shares (m) 840.3
Diluted earnings per share (Rs) 20.9
Price to earnings ratio (x)* 30.6

*based on trailing 12 months earnings

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the investor could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the investor could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the investor should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the investor could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

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 8-QTR ANALYSIS

Detailed Quarterly Results With Charts

COMPARE CIPLA WITH

MARKET STATS