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Cipla topped the monthly rankings for sales of prescription drugs during December 2003 (as per ORG report). Domestic sales for the third quarter 2003 recorded a growth of more than 13% and export sales for the same period recorded an impressive growth of 80%.
The anti-asthmatics and cardiovascular segments have shown good performance in the domestic market. In the exports markets, the anti-AIDS, anti-depressants, anti-asthmatics and CNS segments have shown good performance.
Material cost (as a percent to sales) is lower on account of product mix mainly due to exports (both formulations and APIs) where the margins have been higher as compared to the previous quarters of the current year.
Other expenses have increased mainly due to increase in maintenance costs of our units to meet international regulatory standards and higher recurring costs on overheads such as manufacturing, stores & spares, etc.
Excise duty has increased due to change in proportion of dutiable products to duty-exempted products.
The increase in interest cost is due to short-term borrowings during the quarter.
The net tax liability for the quarter has gone up as a percentage to profit before tax due to lower deduction available to the Company on account of export profits u/s 80 HHC of the Income Tax Act from Rs 37 cr in FY 0203 to Rs 22.5 cr in FY 0304.
Other operating income has increased during the quarter due to payments received for product development under various agreements with foreign partners & higher export benefits.
Other income has increased mainly on account of accrued interest & foreign exchange gains.
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