Cipla Limited has posted sales of Rs 2 bn (up 24% YoY) and a net profit of Rs 322 mn (up 9% YoY) for the quarter ended 30th June 1999. The company recorded a 105% jump in export revenues to Rs 360 mn. It has reduced its interest outgo by 50% to Rs 3 mn.
Cipla is the second largest pharmaceutical company in India. It is recognised as a technologically driven company with strong brand equity and a wide product range. All its bulk manufacturing facilities have USFDA approval, while formulation facilities have WHO's GMP approval.
During the quarter, while expenditure increased 20%, sales registered a growth of 24%. The company was thus able to improve its operating margins to 24.5% from 22.2% in the corresponding period last year. While Cipla has successfully pared its interest costs by 52% to Rs 3 mn, the provision for depreciation (up 52%) and taxation (up 62.5%) have risen significantly. Overall, the net profit margin has improved to 16.1% from 15.5%.
The company is to launch six new products, including the CFC free aerosol inhaler in the coming quarter. This is expected to further give a boost to the company's topline in the current year.
Analysts have rated the stock as a 'BUY' on account of its strong presence in the domestic formulations market and the success it is expected to have achieved in new drug delivery systems. The analysts consider the stock as value for money.
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