CIPLA Announces Quarterly Results (2QFY20); Net Profit Up 31.2%

Thu, 14 Nov

CIPLA has announced its results for the quarter ended September 2019. Here is a detailed performance review of the same:

CIPLA Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	40,119	39,890	43,958	10.2%	9.6%
Other income	Rs m	1,326	784	1,005	28.3%	-24.2%
Turnover	Rs m	41,445	40,674	44,963	10.5%	8.5%
Expenses	Rs m	33,097	30,844	34,863	13.0%	5.3%
Gross profit	Rs m	7,022	9,046	9,095	0.5%	29.5%
Depreciation	Rs m	2,819	2,680	2,830	5.6%	0.4%
Interest	Rs m	444	521	461	-11.6%	3.8%
Profit before tax	Rs m	5,085	6,629	6,810	2.7%	33.9%
Tax	Rs m	1,424	1,922	2,006	4.3%	40.8%
Profit after tax	Rs m	3,661	4,707	4,804	2.1%	31.2%
Gross profit margin	%	17.5	22.7	20.7
Effective tax rate	%	28.0	29.0	29.4
Net profit margin	%	8.8	11.6	10.7

Year-on-Year Performance:

• The company's operating income during the quarter grew 9.6% on a year-on-year (YoY) basis. The expenses were up by 5.3% YoY during the same period.
• The company's operating profit increased by 29.5% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 20.7% in 2QFY20 as against 17.5% in 2QFY19.
• Depreciation charges increased by 0.4% and finance costs increased by 3.8% YoY, respectively.
• Other income declined by 24.2% YoY during the quarter.
• Net profit for the quarter increased by 31.2% YoY. Net profit margins during the quarter increased from 8.8% in 2QFY19 to 10.7% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 10.2% on a quarter-on-quarter (QoQ) basis. The expenses were up by 13.0% QoQ during the same period.
• The company's operating profit increased by 0.5% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 20.7% in 2QFY20 as against 22.7% in 1QFY19.
• Net profit for the quarter increased by 2.1% QoQ, while net profit margins declined from 11.6% in 1QFY19 to 10.7% in 2QFY20.

To see how CIPLA has performed over the last eight quarters,please visit here.

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CIPLA Share Price Performance

Over the last one year,CIPLA share price has moved down from Rs 520.1 to Rs 450.4, registering a Loss of Rs 69.7 or around 13.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,939.9 (up 0.0%). Over the last one year it has moved down from 14,231.1 to 12,939.9, a gain of 1,291 points (down 9.1%).

Overall, the S&P BSE SENSEX is up 14.4% over the year.

Current Valuations

At the current price of Rs 450.4, the price to earnings (P/E) ratio of CIPLA stands at 22.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.4 times.