Forex gains push Cipla Q2 net up 82%

An increase in exports — mainly of active pharmaceutical ingredients (API) — and foreign exchange gains have helped Cipla, the domestic drug major, post a jump of 82.1 per cent in its net profit for the July-September quarter.

The company posted a net profit of Rs 275.7 crore during the quarter, compared to Rs 151.4 crore posted in the corresponding previous year’s quarter, according to the consolidated results announced by the company today.

It explained that there had been a decrease of about 23 per cent in other expenditure, by Rs 100 crore during the quarter. This was mainly due to a favourable foreign exchange situation, which led to a gain of Rs. 7.5 crore in the quarter, as compared to a loss of Rs 104.5 crore in the corresponding quarter last year.

Total sales during the period increased five per cent to Rs 1,383.9 crore from Rs 1,317.6 crore in the corresponding previous year’s quarter. Total income from operations was higher by 6.4 per cent at Rs1,455.61 crore.

Exports of APIs and other products increased by 37.5 per cent to Rs170.6 crore.