Cipla profit falls 68% to Rs80.87 crore

Mumbai: Cipla Ltd, India’s second-largest drug maker by sales, on Tuesday posted a decline of 68% in net profit for the quarter ended 31 March, compared with the year-ago period, a company statement said.

Net profit during the period fell to Rs.80.87 crore from Rs.259.66 crore in the same quarter last year, the company said. Total income increased to Rs.3,206 crore from Rs.2,980 crore a year ago, a growth of 8%.

Cipla shares closed at Rs.494.9 on BSE, down by 0.50%, while the benchmark Sensex went up 0.30% to 25,305.47 points.

For the year ended 31 March, net profit went up to Rs.1,506 crore from Rs.1,181 crore for the previous year. Revenue for FY16 stood at Rs.13,372.4 from Rs.10,882 crore.

The company’s domestic business contributed 40% to overall annual sales. Cipla has a share of 5.3% in the Indian pharmaceutical market, company said.

Domestic sales grew 16% to Rs.1,258 crore during Q4 FY15-16, up from Rs.1,086 crore during Q4 FY14-15. For the quarter, exports of formulations increased 3.2% to Rs.1,744 crore, from Rs.1,690 crore during the quarter.

Cipla, for whom the US market makes up less than 10% of revenue, has been expanding its presence in the US through multiple acquisitions, with plans to double revenue from the US market to 15-20% by 2020.

In September, Cipla EU Ltd acquired two US-based companies—InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc—for $550 million. The combined revenue from these transactions was more than $200 million for the year ended December and more than $225 million in the 12 months to June, Mumbai-based Cipla said.