The Hindu Business Line : Exports lift Cipla's Q4 net to Rs 102 cr

BUOYED by exports, the Mumbai-based pharmaceutical company Cipla Ltd has seen a healthy growth for the quarter and financial year ended March 31, 2004.

The company clocked a net profit of Rs 101.74 crore for the fourth quarter ended March 31, 2004, as compared to a net profit of Rs 46.73 crore during the same period last year.

Total sales for the quarter under review increased to Rs 610.33 from last year's Rs 399.22 crore, the company informed the BSE.

For the financial year ended March 31, 2004, the company posted a net profit of Rs 313.77 crore, as compared to Rs 247.74 crore in the previous year. Total income has increased to Rs 2,094.52 crore (Rs 1,599 crore).

Company officials point out that while the last quarter saw a 55 per cent growth in exports, the financial year saw a robust 44 per cent growth.

"Since we are present in about140 countries, this is not skewed to any particular market or product. The bulk drugs category, involving the sale of the ingredients that go into medicines, saw a 98 per cent growth in Q4 and a 53 per cent growth in the year. Similarly, the formulations or the finished drug category saw a 30 per cent growth for the quarter and a 37 per cent growth for the financial year," officials said.

Throwing light on the drug pricing-related litigation that the company faces, Cipla said that it has not paid the Rs 180-odd crore - or 50 per cent of the amount allegedly overcharged by it till July 2003 - as directed by a Central Government notice. The notice was a follow-up of an apex court directive that permitted the Government to raise demand equivalent to 50 per cent what it claimed as amount that was overcharged.

The Supreme Court directive, to recover 50 per cent of the amount, came even as it sent the pricing-related matter back to the Bombay High Court for further examination.

The saga of litigation had started when Cipla had challenged the inclusion of drugs - Salbutamol Theophylline, Ciprofloxacin and Norfloxacin within the ambit of price control and the Bombay High Court decided in its favour.

Against this backdrop, Cipla said that it had been "advised that the demand notices of the Government are not valid and hence not payable."

Meanwhile, Cipla also held its EGM here on Wednesday, as directed by the Bombay High Court.

The company got shareholders' approval for the acquisition of the land and buildings in Goa, earlier rented out to Cipla for its manufacturing.

"The land and buildings have been effectively taken over from the six private companies that owned it and that consolidates Cipla's Goa facility. The payout towards this is about Rs 1 crore, but it would result in Cipla saving up to Rs 10 crore in rent," company's top official told Business Line.

Also, at a separate meeting held subsequently, the company got shareholders' approval for the stock split from Rs 10 each to Rs 2 each, the official said.