Cipla shares soar after 62% jump in Q2 net

Cipla shares soar after 62% jump in Q2 net

Shares in drug maker Cipla traded at the top of the 50-share Nifty benchmark on Tuesday on the back of strong quarterly earnings. Cipla beat estimates with a 62 per cent annual jump in net profit for the second quarter ending September 2012. Results came in after markets closed on Monday.

This is the fifth straight day of gains in Cipla shares. At 09.45 a.m., Cipla traded 2.8 per cent higher at Rs 391 on the BSE, while the broader BSE healthcare index traded 0.7 per cent higher.

Cipla said Q2 net profit rose to Rs 500 crore against Rs 309 crore in the corresponding quarter last year. Sales rose nearly 24 per cent year-on-year to Rs 2,146 crore againat Rs 1,732 crore.

Cipla's core margins or EBITDA, key gauze of profitability, jumped to 30.9 per cent against 24.6 per cent last year on account of higher contribution of export business. The export formulation business grew by 38 per cent to Rs 1,039 crore. Cipla also benefitted from rupee depreciation and higher price realisations.

"The growth in export revenues was primarily due to growth in anti-depressants, anti-ulcerant and anti-asthma segments," Cipla said in a statement.

The domestic formulation business grew in-line with industry at 13.5 per cent to Rs 962 crore during the second quarter, as against Rs 847 crore during the same period of 2011-12 fiscal.

"The growth in domestic revenues was largely on account of rise in sales of anti-asthma, antibiotics and cardiovascular therapy segments," Cipla said.

Cipla also revised its FY13 sales guidance to 15 per cent from 10 per cent.

 

(With inputs from agencies)