A 20.7% growth in the topline for Cipla has led to an identical growth in the bottomline. While the result is quite creditable the fact remains that the operating margins are under pressure having come down by 1.7%.
(Rs m) | 1QFY00 | 1QFY01 | Change |
Sales | 2,004 | 2,418 | 20.7% |
Other Income | 51 | 76 | 48.6% |
Expenditure | 1,565 | 1,929 | 23.3% |
Operating Profit (EBDIT) | 439 | 489 | 11.4% |
Operating Profit Margin (%) | 21.9% | 20.2% | |
Interest | 3 | 4 | |
Depreciation | 35 | 38 | 7.1% |
Profit before Tax | 452 | 523 | 15.8% |
Other Adjustments | |||
Tax | 130 | 135 | |
Profit after Tax/(Loss) | 322 | 388 | 20.7% |
Net profit margin (%) | 16.0% | 16.0% | |
No. of Shares (m) (eoy) | 20.0 | 60.0 | |
Diluted no. of shares (m) | 60.0 | 60.0 | |
Diluted Earnings per share* | 21.4 | 25.9 | |
*(annualised) |
The growth in the profits has been maintained by other income which is almost 20% of the pre–tax profits as against 15% in the previous year and by a lower effective tax rate of 25.8% as against 28.7% in the first quarter of last year.
What is critical to sustain Cipla's growth in the future is omeprazole exports to the USA which are dependent on whether Astra Zeneca which holds the patent for 'Prilosec' gets a patent extension due to 'Nexia' its new generation anti–ulcer drug.
Also the fate of exports of its anti–AIDS formulation to South Africa still hangs in the balance as compulsory licensing is unlikely to be introduced since international patent holders such as Glaxo and Boehringer Mannheim are planning to offer discounts on their patented treatments.
The stock quotes at Rs 712 which implies an earning multiple of 27.5 times of the FY2001 annualised earnings.
For the quarter ended December 2020, CIPLA has posted a net profit of Rs 8 bn (up 112.8% YoY). Sales on the other hand came in at Rs 52 bn (up 18.2% YoY). Read on for a complete analysis of CIPLA's quarterly results.
Here's an analysis of the annual report of CIPLA for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of CIPLA. Also includes updates on the valuation of CIPLA.
For the quarter ended June 2020, CIPLA has posted a net profit of Rs 6 bn (up 21.4% YoY). Sales on the other hand came in at Rs 43 bn (up 7.2% YoY). Read on for a complete analysis of CIPLA's quarterly results.
Here's an analysis of the annual report of CIPLA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of CIPLA. Also includes updates on the valuation of CIPLA.
More Views on NewsAjit Dayal on how India's vaccine strategy will impact the markets.
In this video I tell you the three Nifty ETFs I think are the best.
Narayana Murthy was one of the first unicorn founders to get the backing of this entity...
There is no stopping this 11-bagger stock from significant upside.
In this video, I'll you what I think is the real reason behind yesterday's market crash.
More
Equitymaster requests your view! Post a comment on "Cipla: Omeprazole exports hold the key". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!