Cipla surprises Street with 10% jump in Q1 profit

NEW DELHI: Pharma major Cipla has posted a 10% increase in profit after tax (PAT) for the quarter ended June 30 at Rs 485 crore against Rs 440 crore in the year-ago period.

Earnings before interest, taxes, depreciation, and amortization (Ebitda) was at Rs 692 crore vesrus Rs 540 crore in the year-ago period. The Street was expecting Ebitda at Rs 490 crore, down 8 per cent year on year (YoY).

Ebitda margins for the quarter stood at 29.9% versus 27.6 % in the year-ago period.

The Street was expecting Ebitda margins to contract to 23.1%.

Sales for the quarter jumped 19.6% to Rs 2,310 crore against Rs 1,930 crore in the previous quarter. Total revenues for the pharma major were expected to grow by 9 per cent YoY to Rs 2,130 crore for the quarter, supported by weak rupee.

Shares of Cipla rallied over 5% on Thursday. The stock closed 5.09 per cent higher at Rs 410.70 on the Bombay Stock Exchange.

Although, Cipla has remained flat so far in the year 2013, analysts feel that the stock has the potential to move higher in the coming quarters.

"Cipla is a leading player in the domestic market. The pharma major has the potential of a strong growth in generic export marketwith exposure to emerging markets," ICICI Securities said in a report.

"Improving product pipelines like inhalers should lead to improvement in margins," the report added.