Adjusted PAT declines by 8.8 per cent primarily led by increase in tax rate and reduction in other income
According to a report compiled by Fortune, the total income of Cipla in Q4FY13 came in at Rs 19452 million. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin were much lower than anticipated at 19.9 per cent.
Adjusted PAT has declined by 8.8 per cent primarily led by increase in tax rate and reduction in other income. Exports grew by mere four per cent Y-o-Y during the quarter. Export formulations grew by only 11.6 per cent Y-o-Y as tender sales in Africa got shifted from Q4FY13 to H1FY14. There has also been increased competition in Lexapro generic in US in Q4FY13 which affected sequential performance.
Domestic formulations grew by only 5.2 per cent Y-o-Y in Q4FY13 which was in line with overall slowdown in market. Branded business grew better than market at 11 per cent Y-o-Y (in comparison to 7.8 per cent overall market growth). The generic business domestically, however, posted a de-growth which dragged the overall growth down. Cipla has posted a growth of 14.6 per cent in FY13 domestically. Branded business has grown in excess of 15 per cent whereas generic business grew at 12 per cent to13 per cent.
EP News Bureau–Mumbai