Cipla posts impressive results for Q1FY16

Cipla, a global pharmaceutical company recently announced its un-audited consolidated results for the June quarter. The company registered an outstanding 120.86 per cent year on year growth in PAT, which amounts to Rs 650.61 crore in Q1FY16 as compared to Rs 294.58 crore in Q1FY15. As well as its revenue boosted by 41.65 per cent to Rs 3852.77 crore in Q1FY16 as against Rs 2720 crore in Q1FY15.

Cipla's Geographical sales contribution contains 37 per cent sales from India and 63 per cent sales from outside India. Its business mix is divided into two segments, which accounts 5 per cent contribution from active pharmaceutical ingredient (API) segment and remaining 95 per cent from formulations segment.

The company's revenue increased mainly due to a 78.5 per cent rise in exports of formulations to Rs 2174 crore during Q1FY16, from Rs 1218 crore during Q1FY15. Exports of APIs also increased by 47 per cent to Rs. 206 crore during Q1FY16, from Rs 140 crore during Q1FY15. However, Cipla's domestic sales grew by 8.4 per cent to Rs 1397 crore during Q1FY16, up from Rs 1289 crore during Q1FY15. The growth in domestic sales was largely on account of growth in Respiratory, Anti-infectives, Cardiac and Gastro Intestinal therapies.

The Company's total operating expenditure also up by 29.18 per cent to Rs 2813.78 crore in Q1FY16 as against Rs 2178.22 crore in Q1FY15.  Cipla's material cost was up by 61.47 per cent to Rs 1187.72 crore and purchase in stock-in-trade up by 67.55 per cent to Rs 225.79 crore as compared to same period last year. However, its other expenses increased by 39.95 per cent to Rs 941.9 crore and Employee cost incremented by 29.23 per cent to 620.26 crore in Q1FY16 against Q1FY15.

The EBITDA surged by 91.77 per cent on an annual basis to reach Rs 1038.99 crore in Q1FY16, while its EBITDA margin expanded by 705 basis points to 26.97 per cent as compared to the same period of last year. Its PBT too jumped by 114.37 per cent to Rs 907.77 crore in Q1FY16 as against Rs 423.45 crore in Q1FY15. This was mainly due to a 21.14 per cent rise in other income to Rs 48.93 crore in Q1FY16 compared to Q1FY15. Cipla's PAT margin after minority interest expanded by 606 basis points to reach 16.89 per cent during Q1FY16 as compared to Q1FY15.

Cipla's shareholding pattern indicates that FII holdings contracted by 540 basis points to 18.29 per cent and DII holdings expanded by 383 basis points to 16 per cent during Q1FY16 as compared to the same period of last year.

Cipla uses cutting edge technology and innovation to meet the everyday needs of all patients. For more than 70 years, it has emerged as one of the most respected pharmaceutical names in India as well as across more than 150 countries. Cipla’s portfolio includes over 1500 products in various therapeutic categories with one quality standard globally.