November 06, 2012
Robust growth in Sales – Driven by Lexapro Sales, other drivers are intact in near
Net sales grew by robust 24% YoY to `2145.87 crore for the quarter ended September
Latest Bookvalue (cons.) -Unit Curr.
2012 driven by sharp 33% YoY growth in Export business (56% of sales) to `1212.70crore. The
growth in export revenues was primarily due to growth in anti-depressants, anti-ulcerant and
anti-asthma segments. Also, the Lexapro Sales contributed significantly to the export sales
during the quarter. But the contribution from the Vancocin is insignificant during the quarter.
Going forward Lexapro and Dymista should drive the growth in the Export business in the near
term. On Dymista, it indicated that export supplies are started during the quarter and expects
SHARE HOLDING PATTERN (%)
more visibility from the next quarter.
Description as on
% of Holding
Also, the Revenues from domestic business (44% of sales) grew by 14% YoY to `962 crore after
strong growth in the Q1, which is slightly lower than the Indian Pharmaceuticals market growth
during the quarter. The growth in domestic revenues was largely on account of growth in anti-
asthma, anti-biotics and cardiovascular therapy segments. Also, the branded formulation grew
by 14% and the generic-generic grew by 14% in domestic market for the same period. Further,
the generic-generic business contributed 15% of the domestic sales. It expects the domestic
market growth will be same or in line with the market growth going forward.
Margins are Peak high – part of it's due to Lexapro, part of it sustainable:
Company margins were peak high at 30.9% (up by sharp 660 bps YoY and 330 bps QoQ). This is
on account of fall in other expenses (360 bps YoY to 21.6% of adjusted sales) and Consumption
cost (210 bps YoY to 37.4% of adjusted sales) as percentage to the sales and the net of stock
adjustments. Also, the margins expansion was also on the back of higher margin contribution to
Lexapro supplies to the export market. Eventually, operating profit jumped by 58% YoY to
PAT grew by robust 62%:
After the strong 96% growth in the other income to `64.14 crore,
EBIDTA grew by 60% YoY to `741.09 crore. With the meager interest cost (`5.36 crore vis-à-vis
`2.38 crore) and after the 13% increase in depreciation to `73.96 crore, PBT jump by 68% YoY
to `661.77 crore. Further, after the 290 bps rise in effective tax rate YoY to 24.4% (guided 24%
tax rate for FY'13) PAT grew by robust 62% YoY to `500.01 crore.
Cipla has out beat the markets on all fronts once again and outperformance during the quarter
was driven largely by export business, which in turn driven by the Lexapro Sales. Also, The near
term growth drivers for Export business are intact as the Lexapro may contribute for one more
quarter and also Dymista (Meda's Spray) supplies have already started and expect contribute
significantly to the Q3'FY 13 export sales. On Domestic business, it has grown slightly lower
than the market growth and this growth will continue or grow with the market pace going
forward. Overall, The Cipla's growth story is intact and guided for 15% growth in revenues for
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