Financial Profile
  
   
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30TH SEPTEMBER, 2004
  

(Rupees in millions)

--
Quarter Ended
Half Year Ended
 Year Ended
30.09.2004
30.09.2003
30.09.2004
30.09.2003
31.03.2004
(Audited)
1

Gross Sales & Income from Operations

6211.7

4838.5
11894.1
9380.8
20554.1
Less :Excise Duty
398.0
326.4
786.1
606.8
1323.9
Net Sales & Income from Operations
5813.7
4512.1
11108.0
8774.0
19230.2
2
Other Income
74.2
80.3
193.1
147.1
355.7
3
Total Expenditure
.
.
.
.
.
    
a) (Increase) / decrease in Stock-in-trade
(64.1)
210.1
(217.1)
481.0
206.1
   
b) Consumption of  Materials
3001.6
2120.6
5860.8
4060.7
9663.0
c) Staff Cost
262.1
219.6
563.8
455.6
952.5
d) Other Expenditure
1295.1
1066.7
2514.1
2008.0
4216.8
4
Interest
39.5
18.8
53.2
28.7
103.9
5
Depreciation
125.0
87.5
255.0
175.0
402.8
6
Profit (+) / Loss (-) before Tax (1+2-3-4-5)
1228.7
869.1
2271.3
1712.1
4040.8
7
Provision for Taxation

a) Current Tax
205.0
148.0
430.0
295.0
780.0

b) Deferred Tax
65.0
26.0
90.0
50.0
97.5
8
Net Profit (+) / Loss (-) after Tax and before extra-ordinary item (6-7)
958.7
695.1
1751.3
1367.1
3163.3
9
Extra-ordinary expenditure
-
-
-
-
96.4
10
Tax - prior years'
-
-
-
-
111.0
11
Profit available for appropriation (8-9-10)
958.7
695.1
1751.3
1367.1
2955.9
12
Paid-up Equity Share Capital
599.7
599.7
599.7
599.7
599.7
13
Reserves excluding
Revaluation Reserves
-
-
-
-
11938.9
14
Earning per Share
* Not Annualised
*3.20
*2.32
*5.84
*4.56
9.86
15

Aggregate of Non-Promoter Shareholding

 

- Number of Shares

177030533
35306187
177030533

35306187
35406037

- Percentage of Shareholding
59.04
58.87
59.04

58.87
59.04

- Face Value per Share (Rs.)

2/-
10/-
2/-

10/-
10/-
Notes:
1.
The Company is exclusively in the pharmaceutical business segment.
2.
The figures of the previous year have been regrouped to render them comparable with the figures of the current year.
3.
Pursuant to the Scheme of Arrangement sanctioned by the Bombay High Court, the Company has allotted 8488 equity shares of Rs 2/- each on 10th September, 2004.
4.
No investor grievances were pending at the beginning of the quarter. During the quarter ended 30th September, 2004 103 investor grievances were received. As of that date all grievances except one have been suitably replied.
5.
The Company had challenged the inclusion of the drugs - Salbutamol, Theophylline, Ciprofloxacin and Norfloxacin within the ambit of price control. The petition filed by the Company had been decided in favour of the Company by the Bombay High Court, which held that the said drugs were outside the ambit of price control. However, on the appeal filed by the government, the Supreme Court has remanded the matter to the Bombay High Court for further and more detailed examination in light of the principles laid down by the Supreme Court. The Supreme Court had also permitted the government to recover 50% of the amount that they had claimed was overcharged. The government had sent notices to the Company demanding an aggregate of Rs.1803.7 million in respect of the said drugs, which according to them was 50% of the amount allegedly overcharged by the Company till July, 2003. The Company had replied that the same were not payable in view of the interim orders obtained by the Company in different proceedings in the Karnataka High Court and the Allahabad High Court. Subsequently, the Allahabad High Court had ruled that the prices fixed by the government in respect of the said drugs were illegal and void. On an appeal filed by the government, the Supreme Court has suspended the Allahabad High Court judgement vide an interim order till the next date of hearing. However, in view of the Karnataka High Court Order the Company has been advised that the demand notices of the government are not valid and hence not payable.
6.
The above results were taken on record at the meeting of the Board of Directors held on 26th October, 2004.
 
By order of the Board
For CIPLA LIMITED
   

Mumbai
26st October, 2004
Dr. Y. K. Hamied
Chairman & Managing Director
   
  Financial Review - Quarter ended September 2004
 
Financial performance:

(Rupees in millions)
 
Q2 FY0405
Q2 FY0304
% change
Domestic
3633.0
2908.2
24.9%
Exports
 
 
 
Formulations
1579.2
895.9
76.3%
APIs
837.9
940.4
-10.9%
Total Exports
2417.1
1836.3
31.6%
% of exports to total sales
40.0%
38.7%
Total Sales
6050.1
4744.5
27.5%
 
  
  
  
Other operating income
Technology knowhow/fees
97.2
25.2
 
Others
64.4
68.8
 

Total

161.6
94.0
71.9%

Income from Operations

6211.7
4838.5
28.4%
 
 
 
 
Operating margin
1319.0
895.1
50.9%   
% to income from operations
21.2%
18.5%
 
 
 
 
   
Profit before tax
1228.7
956.6
28.4%   
% to income from operations
19.8%
19.8%
 
 
 
 
 
Profit after tax
958.7
695.1
37.9% 
% to income from operations
15.4%
14.4%
 

 

The total turnover for the second quarter 2004-05 continued to record a remarkable growth of 27.5% over the corresponding period in the previous year. Export of formulations has also shown an excellent growth of more than 76%. In addition, the domestic segment has also performed very well with a growth of about 25% during the current quarter. Exports of APIs were lower mainly due to decrease in API exports to regulated markets.

Among the major segments, the anti-asthmatics, anti-biotics, anti-AIDS, cardiovascular and anti-inflammatory segments have shown good performance in the domestic market. In the exports markets, the anti-biotics, anti-cancer, anti-AIDS and anti-asthmatics segments have performed well.

Material cost has marginally reduced as a percent to sales on account of better product mix.

Other operating income has increased during the quarter due to payments received for product development under various agreements with foreign partners.

The increase in staff cost is due to increased number of employees and annual increments which are commensurate with the increase in activities.

Depreciation has increased due to additional capital expenditure for Goa and other units.

During the current quarter, other expenditure has reduced as a percent to sales mainly due to savings in lease rentals for Goa unit as a result of the scheme of arrangement for demerger.