Cipla

As expected, the company did very well for Q2FY13 and exceeded all estimations. YoY, net sales rose 24% at Rs.2146 crore and net profit was at Rs.500 crore, up 62% and up 25% on a sequential basis.  EBIDTA was up 84% (YoY) at Rs.677 crore. The best part was the EBIDTA margin, which YoY rose from 22.7% to 31%. Clearly it strategy to focus on high margin drugs is now paying off.

The other income of Rs.64 crore also helped shore the bottomline.  The topline was aided mainly by revenue coming in from exports, at Rs.1202 crore or 56% of the net revenue, coming from anti-depressants, anti-ulcerant and antiasthma segments.  The rest, 944 crore was via domestic sales, driven largely by growth in anti-asthma, anti-biotics and cardiovascular therapy segments. In terms of business mix, 91% comes from formulations and 9% from APIs.  The good news is that its Indore factory has got the US FDA approval and hopefully this too will also start reflecting in its performance soon.  The company is surely moving fast to achieve its target of a topline of Rs.10,000 crore by 2015. Its H1Fy13 net profit of Rs.901 crore is already 80% of 12MFY12 net profit at Rs.1124 crore. Cleary, post this stellar Q2 performance, expectations from the company runs high.