Drug-maker Cipla posted a healthy growth in profits, buoyed by a one-time sale of anti-depressant Lexapro to Israeli major Teva for the US market, said Cipla Executive Director S. Radhakrishnan. Teva has a six-month exclusive market on the drug in the US.
Cipla posted 33 per cent growth in export revenues and 13 per cent growth in revenues from the domestic segment.
Export growth
The anti-depressant, anti-ulcerant and anti-asthma segments contributed to growth in export of finished drugs, at Rs 1,039 crore during the quarter under review.
This is over Rs 752 crore in the corresponding previous quarter.
Growth in anti-asthma, antibiotics and cardiovascular therapy segments contributed to Cipla posting domestic revenues of Rs 962 crore during the second quarter.
This compares with Rs 847 crore in same period last year.
Material costs
Material costs decreased by 4 per cent, the company said, largely on account of changes in product mix — a lower proportion of anti-retrovirals (anti-AIDS drugs) and higher contribution of anti-depressants (Escitalopram) — coupled with increased realisations.
As a result, operating margins also increased by more than 6 per cent.
The increase in staff cost of Rs 55 crore follows annual increments and increase in manpower.
Other expenditure
Other expenditure increased by Rs 42 crore for the quarter, mainly from higher travel expenses, marketing expenditure and professional charges.
Tax for the current quarter increased due to higher profits, the company said.
Cipla shares closed marginally up on the BSE, at Rs 380, on Monday.
jyothi.datta@thehindu.co.in