Cipla net rises 34% to Rs 178 cr

Our Corporate Bureau

Mumbai, April 26 : THE Mumbai-based Cipla has registered a 34.08 per cent increase in net profit for the year ended March 31, 2001 at Rs 178.42 crore as against Rs 133.06 crore in the previous year. Net sales/income from operations from the year increased by 37.89 per cent to Rs 1,047.65 crore as against Rs 759.75 crore in 2000.

For the quarter ended March 31, 2001, net profit increased by 18.15 per cent to Rs 34.36 crore as against Rs 29.08 crore in the corresponding period of the previous year. Net sales for the quarter rose by 51.4 per cent to Rs 260.56 crore as against Rs 172.10 crore in the previous year.

Cipla’s joint managing director Amar Lulla said: “We will strive to maintain the same growth rates in the current fiscal,” adding that the company expects to launch atleast 20 new products this year. Last year, Cipla introduced around 30 new products in the market.

Analysts, however, expect the company to make significant inroads into the South African AIDS drugs market. International drug firms recently decided to drop their court bid to prevent South Africa from importing cheap copies of their patented AIDS drugs opening a huge window of opportunity for Indian companies. “We expect significant business to go Cipla’s way, though the margins may not be that high,” an analyst said.

Cipla had earlier requested the South African registrar of patents grant it compulsory licences for eight AIDS drugs. It has already offered to sell a combination of three AIDS drugs at $600 per patient a year to South Africa and other governments (approximately $400 below prices offered by the MNCs that hold the patents to these drugs). This is besides the $350 per patient per year offer for a cocktail of three drugs made to Medecins sans Frontieres (MSF), the non-profit health organisation.

Meanwhile, other income for the quarter ended March 31, 2001 was higher at Rs 13.86 crore as against Rs 11.76 crore in the previous year. Depreciation and interest stood at Rs 3.25 crore and Rs 9 lakh respectively. Provision for taxation jumped to Rs 11 crore for the quarter ended March 31, 2001 as against Rs 3.75 crore in the corresponding period of the previous year.