Cipla Q3 Net up 15% at Rs 328 cr;to buy 60% in Jay Precision

Pharmaceutical firm Cipla Ltd today reported 15.31 per cent increase in its consolidated net profit at Rs 327.85 crore in the third quarter ended December 31, 2014.
The company, which had posted a net profit of Rs 284.31 crore in the same period last fiscal, said it would acquire 60 per cent stake in Jay Precision Pharmaceuticals for a cash consideration of Rs 96 crore.
Net sales during the period under review stood at Rs 2,624.71 crore as against 2,567.97 crore in the year-ago period, the company said in a filing to the BSE.
Domestic sales grew by 14.2 per cent to Rs 1,199 crore during the period under review, up from Rs 1,050 crore in the year-ago period, it added.

The growth in domestic sales was largely on account of growth in respiratory, anti-infectives, cardiac and gastro intestinal therapies, the company said.
Exports, however, saw a decline during the quarter as overseas shipments of formulations decreased by 6.2 per cent to Rs 1,275 crore, down from Rs 1,360 crore in the same period last fiscal.

Active pharmaceutical ingredients exports also declined to Rs 151 crore in the third quarter, from Rs 158 crore in same period last fiscal, it said.
Shares of Cipla Ltd ended the day at Rs 662 per scrip, up 4.07 per cent from the previous close on the BSE.

In a separate fling, Cipla said it has signed a definitive agreement to acquire 60 per cent stake in Jay Precision Pharmaceuticals from the existing shareholders.
Jay Precision is an existing supplier of respiratory devices to the company and has a 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 January 1, 2014. Turnover of Jay Precision for the year ended March 31, 2014 was Rs 30 crore, the filing said.

The transaction is expected to be completed by end of this financial year, subject to completion of certain conditions precedent, Cipla said.