The largest pharmaceutical company in the domestic market, with a 5.42% market share, ahead of Ranbaxy and GSK, Cipla has posted encouraging financial results for the year ended 31st March 2008.
The net sales of the company increased 18% at Rs.4,226.81 crore. Interest outgo increased from Rs.6.97 crore in FY07 to Rs.11.59 crore in FY08. PBT was up 4% at Rs.830.66 crore and PAT was up 6% at Rs.700.48 crore. On an equity of Rs.155.46 crore, the EPS is at Rs.9.01.
Employee cost increased by a whopping Rs.254.31 crore due to overall increase in manpower, salary revisions and change in Bonus Act. Operating margin was down at 23.06% and NPM was also down at 16.57%.
It had a whopping ‘other expenditure’ of Rs.1,041.23 crore and this was mainly on account of sales promotion/advertisement campaign and processing charges. The hi-profile advertising campaign on Cipla’s I-pill, “the morning after pill”, accounted for a large part of this expense.
Regarding the SEZ in Goa where Cipla was to set up its plans, on which the company had already invested Rs.200 crore, the project eventually got scrapped due to a petition filed by Meditab Specialities Pvt Ltd, developer of the SEZ. The case is still being pursued in the courts and it would require only a crystal ball to see and tell us what the future holds regarding the SEZ.
What does not require a crystal ball is that the company, for the current fiscal, has projected a growth between 12 -15%.
There is no doubt that Cipla is one of the bluest of the blue-blooded pharma companies listed on the Indian bourses today. There have some concerns regarding the various demand notices it has been receiving from the Supreme Court though the legal advisors to the company continue to maintain the opinion that the demand notices of the government are not tenable and sustainable.
Currently quoted at Rs.217, Cipla is a great pharma company. Hold on.
The net sales of the company increased 18% at Rs.4,226.81 crore. Interest outgo increased from Rs.6.97 crore in FY07 to Rs.11.59 crore in FY08. PBT was up 4% at Rs.830.66 crore and PAT was up 6% at Rs.700.48 crore. On an equity of Rs.155.46 crore, the EPS is at Rs.9.01.
Employee cost increased by a whopping Rs.254.31 crore due to overall increase in manpower, salary revisions and change in Bonus Act. Operating margin was down at 23.06% and NPM was also down at 16.57%.
It had a whopping ‘other expenditure’ of Rs.1,041.23 crore and this was mainly on account of sales promotion/advertisement campaign and processing charges. The hi-profile advertising campaign on Cipla’s I-pill, “the morning after pill”, accounted for a large part of this expense.
Regarding the SEZ in Goa where Cipla was to set up its plans, on which the company had already invested Rs.200 crore, the project eventually got scrapped due to a petition filed by Meditab Specialities Pvt Ltd, developer of the SEZ. The case is still being pursued in the courts and it would require only a crystal ball to see and tell us what the future holds regarding the SEZ.
What does not require a crystal ball is that the company, for the current fiscal, has projected a growth between 12 -15%.
There is no doubt that Cipla is one of the bluest of the blue-blooded pharma companies listed on the Indian bourses today. There have some concerns regarding the various demand notices it has been receiving from the Supreme Court though the legal advisors to the company continue to maintain the opinion that the demand notices of the government are not tenable and sustainable.
Currently quoted at Rs.217, Cipla is a great pharma company. Hold on.
