Cipla surges after good Q3 result

Cipla advanced 4.77% to Rs 693.60 at 09:50 IST on BSE after consolidated net profit rose 15.3% to Rs 327.85 crore on 6.2% growth in total income to Rs 2806.12 crore in Q3 December 2014 over Q3 December 2013.

The result was announced after market hours yesterday, 12 February 2015.

Meanwhile, the S&P BSE Sensex was up 138.68 points or 0.48% at 28,929.42

On BSE, so far 2.73 lakh shares were traded in the counter as against average daily volume of 1.93 lakh shares in the past one quarter.

The stock hit a high of Rs 701.60 and a low of Rs 661 so far during the day. The stock had hit a record high of Rs 711.45 on 29 January 2015. The stock had hit a 52-week low of Rs 366.70 on 24 February 2014.

The large-cap company has equity capital of Rs 160.59 crore. Face value per share is Rs 2.

Cipla's EBITDA (earnings before interest, taxation, depreciation, and amortization) rose 18.5% to Rs 554 crore in Q3 December 2014 over Q3 December 2013.

Domestic sales rose 14.2% to Rs 1199 crore in Q3 December 2014 over Q3 December 2013. The growth in domestic sales was largely on account of growth in respiratory, anti-infectives, cardiac and gastro intestinal therapies, Cipla said in a statement.

Exports of formulations declined 6.2% to Rs 1275 crore in Q3 December 2014 over Q3 December 2013. Exports of APIs fell 4.4% to Rs 151 crore in Q3 December 2014 over Q3 December 2013.

Meanwhile, Cipla said it has signed a definitive agreement to acquire 60% stake of Jay Precision Pharmaceuticals (Jay Precision), Mumbai, from the existing shareholders, for a cash consideration of Rs 96 crore. Jay Precision is an existing supplier of respiratory devices to the company and has a state of the art manufacturing facility at Vasai, Maharashtra. Considering company's leading position in inhalation therapy, this transaction is aimed at integrating the value chain and will serve as platform for development of next generation respiratory devices, Cipla said. Pharmaceutical undertaking of Jay Precision Products (India) was demerged into Jay Precision effective 1 January 2014. Turnover of Jay Precision for the year ended 31 March 2014 was Rs 30 crore. The transaction is expected to be completed by end of this financial year, subject to completion of certain conditions precedent, Cipla said.

Cipla said that none of the persons belonging to promoter/promoter group(s) of the company has any interest in the transaction and it is not a related party transaction for the company. The transaction does not require any governmental or regulatory approval(s), Cipla added.

Cipla before market hours today, 13 February 2015 said that a binding term sheet has been entered into with the company's existing partner, Biopharm SPA, for establishing a joint venture (JV) company in Algeria. The JV company will manufacture and market respiratory products facilitating Cipla's front-end presence in Algeria. As per the term sheet, the company's wholly owned subsidiary, Cipla (EU), will hold a 40% stake in the JV company while the remainder will be held by a Biopharm-led Algerian consortium. The JV company is expected to make an investment of up to $15 million in the construction of a manufacturing facility. Cipla (EU)'s initial investment in cash in the JV company is expected to be $6 million.

None of the persons belonging to Promoter / Promoter Group(s) of the company has any interest in the transaction and it is not a related party transaction for the company. The transaction is subject to execution of definitive agreement and applicable approvals, Cipla said.

Cipla is a global pharmaceutical company. Its portfolio includes over 1,500 products across wide range of therapeutic categories with one quality standard globally.

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