Cipla net profit dips 22%

Pharmaceutical company Cipla reported a 22 per cent dip in net profit to Rs 214 crore in the fourth quarter of financial year 2010-11 compared to Rs 275 crore in the same period last year. The one-time exceptional income (Rs 95 crore) in the fourth quarter of 2009-10 and increased factory overheads at Indore SEZ resulted in decline of net profit, the company said.

Net sales went up by 23 per cent to Rs 1,627 crore against Rs 1,329 crore on an year-on-year (y-o-y) basis. "Material cost has increased by three per cent on y-o-y basis due to changes in product mix primarily due to higher proportion of anti-retrovirals in formulation exports. The increase in staff cost (Rs 30 crore) is due to increase in manpower particularly at Indore SEZ and annual increments," the company said.

Domestic sales grew by 15 per cent and exports by more than 28 per cent. Net profit for the year ended March 2011, went down by 10 per cent to Rs 967.12 crore, compared to Rs 1,081.49 crore in the last year.

For the year ended March 2011, net sales stood at Rs 6,172.55 crore, compared to Rs 5,411.68 crore in the previous year, growth of 14 per cent.