Tuesday April 30, 10:45 AM
Cipla Ltd: Solid 4QFY02 |
|
By Equitymaster.com
4QFY02 would probably be a record quarter for Cipla (CIPL.BO, news) . The company recorded a stupendeous performance far surpassing market expectations. While sales have leapfroged more than 32%, PAT recorded 80% rise, on the back of strong rise in operating margins. Operating margins have zoomed by more than 980 basis points, after recording a disappointing drop for four consequent quarters.
| (Rs m) |
FY01 |
FY02 |
Change |
4QFY01 |
4QFY02 |
Change |
| Sales |
10,477 |
12,776 |
22.0% |
2,606 |
3,449 |
32.4% |
| Other Income |
396 |
441 |
11.2% |
139 |
107 |
-22.5% |
| Expenditure |
8,319 |
9,965 |
19.8% |
2,257 |
2,648 |
17.3% |
| Operating Profit (EBDIT) |
2,157 |
2,811 |
30.3% |
348 |
801 |
130.0% |
| Operating Profit Margin (%) |
20.6% |
22.0% |
|
13.4% |
23.2% |
|
| Interest |
9 |
20 |
119.8% |
1 |
5 |
455.6% |
| Depreciation |
155 |
215 |
38.7% |
33 |
72 |
120.0% |
| Profit before Tax |
2,389 |
3,017 |
26.3% |
454 |
832 |
83.4% |
| Other Adjustments |
- |
|
|
- |
|
|
| Tax |
605 |
725 |
19.8% |
110 |
215 |
95.5% |
| Profit after Tax/(Loss) |
1,784 |
2,292 |
28.5% |
344 |
617 |
79.6% |
| Net profit margin (%) |
17.0% |
17.9% |
|
13.2% |
17.9% |
|
| No. of Shares (eoy) (m) |
60.0 |
60.0 |
|
60.0 |
60.0 |
|
| Diluted Earnings per share |
29.7 |
38.2 |
|
22.9 |
41.1 |
|
| P/E (at current price) |
|
26 |
|
|
24 |
|
Riding high on bulk exports mainly to developed markets, exports have registered a triple digit sales growth, contributing around 48% of total sales. Surprsingly, even the domestic sales growth has recorded a 23% growth outsmarting the industry growth rate of around 11%. Overall, a sharp change in the revenue mix resulted in a smart rise in operating margins on the back of sharp drop in cost of raw material consumed.
Exports of CFC-free inhaler is expected to kick-start by Aug/ September' 02. Further, Cipla has tied up with several US generic companies for supply of bulk drugs, which have first to file status. Some of these products are Omeprazole, Flutamide and Olanzipine which are leading molecules in their respective therapeutic segments. Further, the company is exploring options for possible tie-ups for venturing into biotech and genetic engineering with a suitable foreign partner.
At the current market price of Rs 990, the stock is trading at 26x its FY02 earnings. The stock is likely to see some upward movement on the back of roboust performance in the last quarter and strong triggers for the stock going forward.
|
