Cipla reported 34% fall in net profit in Q4 March 2007 at Rs 126 crore from Rs 191 crore mainly due to a sharp decline in active pharmaceutical ingredients (APIs) exports and rising material costs. The company’s performance in the same quarter last year was exceptionally good because of strong sales in Western markets.
Net sales for the quarter were up 6.3% to Rs 938.5 crore, on the back of a 14.4% growth in domestic revenues to Rs 399.7 crore. Exports were flat at Rs 529.3 crore in the quarter ended 31 March 2007, from Rs 526.6 crore in the last year’s corresponding quarter. A change in product mix also contributed to the decrease in profitability.
Cipla today reported a 8% increase in net profit at Rs 660.82 crore for the year ended 31 March 2007, as compared to Rs 607.64 crore in FY 2006. Net sales were up at Rs 3572.1 crore compared to Rs 2985.9 crore in the year ended 31 March 2006.
Cipla expects its exports business to show modest growth in the next two quarters, on account of ever-rising pricing pressure in the US.