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Cipla: Impacted by one offs - Views on News from Equitymaster
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Cipla: Impacted by one offs
Jun 2, 2016

Cipla has announced its 4QFY16 results. The company has reported 7.6% YoY growth in sales and a decline of 68.9% YoY in net profits. Here is our analysis of the results.

Performance summary
  • Net sales grew by 7.6% YoY. The growth was driven by domestic business, while export formulations saw muted growth.
  • The operating profits were impacted by various one-time non-recurring expenses. For the quarter, operating margins declined to 6.7% vs 16.4% in 4QFY15.
  • Net profits too declined by 68.9% YoY due to surge in expenses at the operating level.

    Financial performance: A snapshot
    (Rs m) 4QFY15 4QFY16 Change FY15 FY16 Change
    Net sales 29,807 32,067 7.6% 108,824 133,725 22.9%
    Other operating income 1,120 599 -46.5% 4,630 3,058 -34.0%
    Expenditure 25,850 30,476 17.9% 91,836 111,772 21.7%
    Operating profit (EBDITA) 5,077 2,190 -56.9% 21,618 25,011 15.7%
    EBDITA margin (%) 16.4% 6.7% 19.1% 18.3%
    Other income 612 547 -10.6% 1,656 2,089 26.2%
    Interest (net) 434 368 -15.2% 1,682 1,613 -4.1%
    Depreciation 1,357 1,414 4.2% 5,047 5,417 7.3%
    Minority interest 271 185 -31.7% 735 615 -16.3%
    Profit before tax 3,627 770 -78.8% 15,810 19,455 23.1%
    Tax 1,030 -39 4,000 4,396 9.9%
    Profit after tax/(loss) 2,597 809 -68.9% 11,810 15,059 27.5%
    Net profit margin (%) 8.4% 2.5% 10.4% 11.0%
    No. of shares (m) 803.4
    Diluted earnings per share (Rs) 18.7
    Price to earnings ratio (x)* 25.3

    * based on trailing 12 months earnings

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