Financial Profile
  
   
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 31ST DECEMBER, 2004
  

(Rupees in million)

--
Quarter Ended
Nine Months Ended
Year Ended
31.12.2004
31.12.2003
31.12.2004
31.12.2003
31.03.2004
(Audited)
1
Gross Sales & Income from Operations
6413.8
5225.5
18307.9
14606.3
20554.1

Less:Excise Duty
452.4
419.7
1238.5
1026.5
1323.9

Net Sales & Income from Operations
5961.4
4805.8
17069.4
13579.8
19230.2
2
Other Income
411.8
88.5
604.9
235.6
355.7
3
Total Expenditure
.
.
.
.
.
    
a) (Increase)/decrease in Stock-in-trade
31.0
(244.7)
(186.1)
236.3
206.1
   
b) Consumption of  Materials
3082.2
2566.2
8943.0
6626.9
9663.0
c) Staff Cost
284.6
225.6
848.4
681.2
952.5
d) Other Expenditure
1358.8
1159.3
3872.9
3167.3
4216.8
4
Interest
12.4
39.7
65.6
68.4
103.9
5
Depreciation
127.5
90.0
382.5
265.0
402.8
6
Profit (+)/Loss (-) before Tax (1+2-3-4-5)
1476.7
1058.2
3748.0
2770.3
4040.8
7
Provision for Taxation
a) Current Tax
147.5
268.3
577.5
563.3
780.0
b) Deferred Tax
72.5
36.7
162.5
86.7
97.5
8
Net Profit (+)/Loss (-) after Tax and before extra-ordinary item (6-7)
1256.7
753.2
3008.0
2120.3
3163.3
9
Extra-ordinary expenditure
-
-
-
-
96.4
10
Tax - prior years'
-
-
-
-
111.0
11
Profit available for appropriation (8-9-10)
1256.7
753.2
3008.0
2120.3
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 (Rs.)
* Not Annualised
*4.19
*2.51
*10.03
*7.07
9.86
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.
One investor grievance was pending at the beginning of the quarter. During the quarter ended 31st December, 2004, 73 investor grievances were received. As of that date all grievances except four have been suitably replied.
4.
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. An appeal filed by the government against this ruling has since been admitted by the Supreme Court. The Company has been advised that the demand notices of the government are not valid and hence not payable in view of the High Court Orders.
5.
The above results were taken on record at the meeting of the Board of Directors held on 18th January, 2005.
 
By order of the Board
For CIPLA LIMITED
   

Mumbai
18th January, 2005
Dr. Y. K. Hamied
Chairman & Managing Director
   
 Financial Review - Quarter ended December 2004
 
 Financial performance:

(Rupees in million)
 
Quarter Ended
Nine Months Ended
 
31.12.2004
 31.12.2003
% change
 31.12.2004
31.12.2003
 % change
             
Domestic
3354.2
2995.5
12.0%
10517.8
8957.5
17.4%
             
Exports -
Formulations
2078.8
997.6
108.4%
5075.6
2777.4
82.7%
APIs
773.9
1068.9
-27.6%
2225.5
2571.6
-13.5%
Total Exports
2852.7
2066.5
38.0%
7301.1
5349.0
36.5%
% of exports to total sales
46.0%
40.8%
41.0%
37.4%
             
Total Sales
6206.9
5062.0
22.6%
17818.9
14306.5
24.6%
             
Other operating income
            
Technology knowhow/fees
143.4
101.9
313.7
135.8
Others
63.5
61.6
175.2
164.1
Total
206.9
163.5
26.5%
489.0
299.8
63.1%
Income from Operations
6413.8
5225.5
22.7%
18307.9
14606.3
25.3%
             
Operating margin
1204.8
1099.4
12.5%
3591.2
2868.1
25.2%
% to income from operations
18.8%
21.0%
19.6%
19.6%
             
Profit before tax
1476.7
1058.2
39.5%
3748.0
2770.3
35.3%
% to income from operations
23.0%
20.3%
20.5%
19.0%
             
Profit after tax
1256.7
753.2
66.8%
3008.0
2120.3
41.9%
% to income from operations
19.6%
14.4%
16.4%
14.5%

 

While domestic sales for the third quarter 2004 recorded a growth of 12%, export sales for the same period grew by 38%.

As compared to the corresponding quarter of last year, material cost (as a percent to sales) is higher due to product mix and lower API exports. This also accounts for lower operating margins.

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

The increase in other expenses is mainly on account of increased selling expenditure including costs incurred for national conferences, television campaigns and commission to agents.

Provision for tax is lower during the current quarter due to lower tax liability on capital gains and optimization of tax incentives for Goa unit operations.

During the current quarter, other income has increased on account of profits on investments.