Financial Profile
  
   
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 31st DECEMBER, 2010
  

(Rupees in crores)

Particulars
Unaudited
Audited
Quarter Ended
Nine Months Ended
Year Ended
31.12.2010
31.12.2009
31.12.2010
31.12.2009
31.03.2010
1

a) Gross Sales    
1515.75

1357.87
4545.37

4081.24

5411.68

Less: Excise Duty
14.39

13.71
36.75

40.64

52.16

Net Sales
1501.36
1344.16
4508.62
4040.60
5359.52
 
b) Other Operating Income
52.31
94.34
140.16
214.72
265.39
Total Operating Income (a+b)
1553.67
1438.50
4648.78
4255.32
5624.91
2
Expenditure
          
    
a) (Increase)/ decrease in
    Stock-in-trade and work in     progress
(66.35)
(32.79)
(5.77)
(90.81)
(184.09)
   
b) Consumption of Materials
574.26
470.25
1635.14
1474.67
2033.01
 
c) Purchase of Traded Goods
187.93
187.29
485.40
487.11
621.66
d) Employee Cost
135.09
88.95
410.23
270.39
371.08
 
e) Depreciation
65.25
45.67
183.98
139.29
187.84
f) Other Expenditure
404.56
344.92
1088.44
1011.72
1430.09
 

g) Total

1300.74
1104.29
3797.42
3292.37
4459.59
3
Profit (+)/Loss (-) from Operations before Other Income, Interest & Exceptional items (1-2)
252.93
334.21
851.36
962.95

1165.32
4
Other Income
25.69
17.84
59.08
42.63
88.33
5

Profit (+)/Loss (-) before Interest & Exceptional items (3+4)

278.62
352.05
910.44
1005.58
1253.65
6
Interest
2.93
4.37
3.32
23.20
23.66
7

Profit (+)/Loss (-) after Interest but before Exceptional items (5-6)

275.69
347.68
907.12
982.38
1229.99
8

Exceptional items

-
-
-
-

95.00
9
Profit (+)/Loss (-) before Tax (7+8)
275.69
347.68
907.12
982.38
1324.99
10
*Tax Expense
43.00
58.65
154.00
175.90
243.50
11
Net Profit (+)/Loss (-) after Tax (9-10)
232.69
289.03
753.12
806.48
1081.49
12

Paid-up Equity Share Capital
(Face Value Rs.2/- per share)

160.58
160.58
160.58
160.58
160.58
13

Reserves excluding Revaluation Reserves as per Balance Sheet of previous Accounting Year

       
5744.54
14

Earning per Share (Rs.)
** Not Annualised

**2.90
**3.60
**9.38
**10.26
13.69
15

Public Shareholding

 
   
 
- Number of Shares
502598674
500524317
502598674
500524317
500849336
 
- Percentage of Shareholding
62.60
62.34
62.60
62.34
62.38
16
Promoters and Promoter Group Shareholding
         
 
a) Pledged/Encumbered
 
   
 
- Number of Shares
NIL
NIL
NIL
NIL
NIL
 
- Percentage of shares (as a %   of the total shareholding of   promoter and promoter   group)
NIL
NIL
NIL
NIL
NIL
 
- Percentage of shares (as a %   of the total share capital of   the   Company)
NIL
NIL
NIL
NIL
NIL
 
b) Non Encumbered
 
   
 
- Number of Shares
295485978
295485978
295485978
295485978
295485978
 
- Percentage of shares (as a %   of the total shareholding of   promoter and promoter   group)
100.00
100.00
100.00
100.00
100.00
 
- Percentage of shares (as a %   of the total share capital of   the   Company)
36.80
36.80
36.80
36.80
36.80
Notes:
1.

The Company is essentially in the pharmaceutical business segment.
2.

No investor grievances were pending at the beginning of the quarter. During the quarter ended 31st December, 2010, six investor grievances were received. As of 31st December, 2010 all grievances have been suitably replied to.

3.

In 2003 the Company received notice of demand from the National Pharmaceutical Pricing Authority, Government of India on account of alleged overcharging in respect of certain drugs under the Drug Price Control Order. This was contested before the jurisdictional High Courts wherein it was held in favour of the Company. The orders were challenged before the Hon'ble Supreme Court by the Government. The Hon'ble Supreme Court by separate orders restored the matter to the jurisdictional High Court for interpreting the Drug Policy on the basis of directions and principles laid down by them and also restrained the Government from taking any coercive action against the Company.  The Company has been legally advised that on the basis of these orders there is no probability of demand crystallising. Hence no provision is considered necessary in respect of notice of demand aggregating to Rs.1230.28 crores (inclusive of interest) for the period July 1995 to April 2009.

4.

The figures of the previous year have been regrouped/recast to render them comparable with the figures of the current year.

5.

*Tax expense is inclusive of current tax, deferred tax and Minimum Alternate Tax (MAT) credit.
6.

The above results after being reviewed by the Audit Committee were approved at the meeting of the Board of Directors held on 4th February, 2011.

 
By order of the Board
For CIPLA LIMITED
   

Mumbai
4th February, 2011
Dr. Y. K. Hamied
Chairman & Managing Director
   
Financial Review – Period ended December 2010
 

(Rupees in crores)
 
Quarter Ended
Nine Months Ended
  31.12.2010 31.12.2009 % change 31.12.2010 31.12.2009 % change
             
Domestic
733.97
659.21
11.3%
2165.53
1942.53
11.5%
             
Exports -
Formulations
643.18
575.76
11.7%
1932.81
1704.83
13.4%
APIs & others
138.60
122.90
12.8%
447.03
433.88
3.0%
Total Exports
781.78
698.66
11.9%
2379.84
2138.71
11.3%
% of exports to total sales
51.6%
51.5%
  
52.4%
52.4%
  
             
Total Sales
1515.75
1357.87
11.6%
4545.37
4081.24
11.4%
             
Other operating income
            
Technology knowhow/fees
15.14
70.27
  
42.99
146.74
  
Others
37.17
24.07
  
97.17
67.98
  
Total
52.31
94.34
-44.6%
140.16
214.72
-34.7%
Income from Operations
1568.06
1452.21
8.0%
4685.53
4295.96
9.1%
             
Material cost
695.84
624.75
  
2114.77
1870.97
  
% to total sales
45.9%
46.0%
  
46.5%
45.8%
  
             
Operating margin
318.18
379.88
-16.2%
1035.34
1102.24
-6.1%
% to income from operations
20.3%
26.2%
  
22.1%
25.7%
  
             
Profit before tax
275.69
347.68
-20.7%
907.12
982.38
-7.7%
% to income from operations
17.6%
23.9%
  
19.4%
22.9%
  
             
Profit after tax
232.69
289.03
-19.5%
753.12
806.48
-6.6%
% to income from operations
14.8%
19.9%
  
16.1%
18.8%
  

During the quarter, the company posted a growth of 8% in income from operations. However, operating margins and profits are lower by about 16% and 20% respectively primarily on account of increased factory overheads at Indore SEZ and appreciation of the Indian rupee by about 4% on a year-on-year basis which has adversely affected export turnover as well as realizations.

Domestic sales grew by more than 11%. Inspite of a rupee appreciation of about 4%, export sales grew by about 12%. Technical knowhow/fees for the quarter has decreased by about Rs. 55 cr on account of a one-time fees received in third quarter of 2009-10 resulting in a high base on a year-on-year basis.

Material cost has been maintained at similar levels on a year-on-year basis. The increase in staff cost (Rs. 46 cr) is due to increase in manpower particularly at Indore SEZ, regrouping of contractual staff at Goa facilities and annual increments. Interest cost has decreased due to repayment of short-term working capital loans availed by the company. Depreciation has increased by about Rs. 20 cr due to additions to fixed assets mainly on account of commissioning of Indore SEZ factory. Other expenditure has increased mainly due to increase in selling expenses and factory expenditure, in particular at Indore SEZ, such as repairs & maintenance, power & fuel, stores & spares, etc.