Drug firm Cipla today said its net profit declined by 19.49% to Rs 232.69 crore for the third quarter ended December 31, 2010, primarily due to high expenses at its Indore plant and rupee appreciation.
The company had posted a net profit of Rs 289.03 crore in the same period previous fiscal, Cipla said in a filing to the Bombay Stock Exchange (BSE).
Total income of the company rose to Rs 1,579.36 crore for the third quarter, compared to Rs 1,456.34 crore in the same period previous fiscal.
"Operating margins and profits are lower by about 16 per cent and 20%, respectively, primarily on account of increased factory overheads at Indore special economic zone (SEZ) and appreciation of the Indian rupee by about 4% on a year-on-year basis which has adversely affected export turnover as well as realisations," the company said.
During the quarter, the company posted a growth of 8% in income from operations. Its domestic sales grew by more than 11%, it added.
The company's export sales grew by about 12% in spite of a rupee appreciation of about 4%.
Shares of Cipla today closed at Rs 324.20 on BSE, down 1.58% from its previous close.
