CIPLA LTD

Latest Results (Rs Cr)

PeriodEnded
Dec-13 Dec-12 Var [%]
2,253.2 2,039.5
Sales
0
9
10.47
Other
Income
53.08
53.48
-0.75
PBIDT
456.02 546.37
-16.54
PBDT
427.72 537.07
-20.36
PBIT
373.94 468.37
-20.16
PBT
345.64 459.07
-24.71
RPAT
260.77 338.78
-23.03
EPAT
0
0
0
APAT
260.77 338.78
-23.03
CP
342.85 416.78
-17.74

Shareholding Pattern
(AS ON Dec 2013)
Foreign
Institutions
Govt Holding
Non Promoter Corp.
Hold.
Promoters
Public & Others

Shares
[%]
227,777,587.
00
28.37
85,145,883.0
0
10.61
0
0
41,259,301.0
0
5.14
295,485,978.
00
36.8
153,252,608.
00
19.09

Market Data (As on Friday, February 28, 2014 )

Price (Rs)
Lat. EPS(Rs)
Mkt. Cap.(Rs Cr)
Lat. BV(Rs)

384.35
17.18
30859.5
110.36

52 W H/L(Rs)
Lat. P/E
Lat.Eqty (Rs Cr)
Div. Yield (%)

450 /
354.4
22.37
160.58
0.52

Stock Movement

Rating Date
02-122013
02-122013
24-092013

Security Type
Long Term Debts
Short Term Debt
Non-Convertible Debentures

Amount (Cr.)

Rating

72.38 AAA
1723.5 A1+
2000 Ind AAA

29-042013
29-042013
12-032013
12-032013
28-022013
28-022013
08-022013
08-022013

Commercial Paper/Short Term Debt

1000 A1+(ind)

Commercial Paper/Short Term Debt

1000 A1+(ind)

Long Term Debts

72.38 AAA

Short Term Debt

1723.5 A1+

Short Term Debt

1723.5 A1+

Long Term Debts

72.38 AAA

Long Term Debts

68.6 AAA

Short Term Debt

1723.5 A1+

Financial Highlights

Operating Income
Growth % (YOY)
OPBDIT
Less: Depreciation
Less: Interest
charges
Other Income
Exceptional
Gain/Loss
PBT
Less: Tax
PAT (Concern
Share)
OPBDIT/OI%
PAT/OI%

Q2
Q3
Q3
FY13
FY13
Q2 FY 14 FY14
2,198.6 2,079.3
2,281.5
0
8
2,347.44
8
6.77%
9.72%
675.6 492.89
552.93
402.94
73.96
78
81.65
82.08
4.01
64.14

9.3
53.48

33.61
64.52

28.3
53.08

661.77
161.76

459.07
120.29

502.19
126.16

345.64
84.87

500.01
30.73%
22.74%

338.78
21.60%
14.85%

376.03
23.55%
16.02%

260.77
17.66%
11.43%

Company Profile
Cipla Limited (Cipla) is one of the leading pharmaceutical company in the domestic formulations
segment with a market share of ~5%. In addition to its strong presence in the Indian market, the
company generates nearly 55% of its turnover from exports to various emerging and regulated
markets. In the domestic formulations market, Cipla has particularly stronger presence in antiinfective and respiratory segment. Within respiratory, it commands over 75% share of inhalers in
India. Over the past three years (FY09-11), the growth in Ciplas domestic formulations at

12.0% has been below the industry average largely due to its higher presence in some of the
mature products as well as pure generic segments and comparatively lower presence in fastgrowing chronics like CVS and Anti-Diabetic.
In the exports market, Cipla operates through partnerships based business model, wherein it
develops and manufactures the products and receives licensing income and manufacturing
revenues. The companys exports turnover has grown at a CAGR (%) of 17% over the past five
years. The African region is major market for the company followed by US and Europe. To
strengthen its presence in the exports market, Cipla is targeting the inhalers segment in Europe
with a basket of 11 products. Given the high entry barriers (due to relatively longer approval
time frames), the inhalers segment faces relatively limited competition compared to pure vanilla
generics and offer lucrative opportunity for Cipla to ramp up its presence in the European
markets. With recently expanded capacities (at Indore SEZ), growing approvals in the inhalers
in Europe and other non-US markets, the company is likely to register strong growth in overseas
markets going forward.
Performance Overview
The Companys revenue from operations during the financial year 2012-13 amounted to Rs.
8,295 crore against Rs. 7,075 crore in the previous year recording a growth of more than 17
percent. The domestic turnover increased by more than 14 percent, from `3,213 crore in the
previous financial year to Rs.3,681 crore in the financial year under review. Total exports
increased by about 20% during the year to Rs.4,426 crore. During the year under review,
operating margin increased by 34 percent. This was primarily due to reduction in material cost
on account of improved realisations, changes in the product mix and higher contribution of
Escitalopram in the US. As a result, profit after tax increased by more than 34 percent to `1,507
crore from `1,124 crore in the previous financial year.
In order to build a strong foundation for future growth, Cipla launched Jaagruti, the
transformation programme, during the year under review. The programme is aimed at reducing
business complexity and strengthening operations. Cipla rationalized its exposure to several low
value markets and partners to reduce complexity.
Additionally, on-time-in-full delivery levels improved two to threefold through dedicated effort in
the supply chain processes. The impact of these initiatives has already been recognized by
several key partners worldwide.
Another critical focus of this programme is to improve cost effectiveness across products while
upholding the highest standards of regulatory, quality and safety requirements. Jaagrutis efforts
have reduced yield loss, shortened lead times and debottlenecked constrained capacities
across manufacturing facilities by implementing several improvement ideas.
The Company has recently also launched Procurement Effectiveness Effort to build best in
class procurement practices and further realize cost savings.

Granules India Ltd

Latest Results (Rs Cr)
PeriodEnded
Dec-13 Dec-12 Var [%]
Sales
262.12 173.96
50.68
Other
Income
0.31
0.37
-16.22
PBIDT
45.32
17.14 164.41
PBDT
41.01
12.68 223.42
PBIT
38.65
12.26 215.25
PBT
34.35
7.8 340.38
RPAT
22.99
5.43 323.39
EPAT
0
0
0
APAT
22.99
5.43 323.39
CP
29.65
10.31 187.58

Shareholding Pattern
(AS ON Dec 2013)
Foreign
Institutions
Govt Holding
Non Promoter Corp.
Hold.
Promoters
Public & Others

Market Data (As on Monday, March 10, 2014 )

Price (Rs)
Lat. EPS(Rs)
Mkt. Cap.(Rs
Cr)

268.85 52 W H/L(Rs)
32.57 Lat. P/E
Lat.Eqty (Rs
545.23 Cr)

294 / 90.15
8.25
20.28

Shares
[%]
5,395,586.0
0
26.61
15,608.00
0.08
0
0
632,909.00
9,909,974.0
0
4,327,077.0
0

3.12
48.86
21.33

Lat. BV(Rs)

133.46 Div. Yield (%)

0.74

Stock Movement

Credit Rating
Rating Date
27-12-2013
27-12-2013
27-12-2013
27-12-2013
27-12-2013
27-12-2013
19-11-2013
19-11-2013
19-11-2013
19-11-2013
08-11-2013
08-11-2013
08-11-2013
08-11-2013
08-11-2013
08-11-2013
11-09-2013
11-09-2013
11-09-2013
11-09-2013
11-09-2013
11-09-2013
05-09-2013
05-09-2013

Security Type
Debt Progamme
Debt Progamme
Debt Progamme
Debt Progamme
Debt Progamme
Long Term Debts
Long Term Debts
Long Term Debts
Short Term Debt
Short Term Debt
Debt Progamme
Long Term Debts
Debt Progamme
Debt Progamme
Debt Progamme
Debt Progamme
Long Term Debts
Long Term Debts
Long Term Debts
Short Term Debt
Short Term Debt
Long Term Debts
Long Term Debts
Short Term Debt

Amount
(Cr.)
5
6.6
12.64
125.34
257.32
1.38
1.87
6.6
137.98
250.72
5
1.38
257.32
125.34
12.64
6.6
1.38
5
6.6
257.32
125.34
12.64
259.19
137.98

Rating
A2
BBB
BBB
A2
A2
BBB
BBB+
BBB+
A2
A2
A2
BBB
A2
A2
BBB
BBB
BBB
BBB
BBB
A2
A2
BBB
BBB+
A2

Financial Highlights

Operating Income
Growth % (YOY)
OPBDIT
Less: Depreciation
Less: Interest
charges
Other Income
Exceptional
Gain/Loss
PBT
Less: Tax
PAT (Concern
Share)
OPBDIT/OI%
PAT/OI%

Q2 FY13 Q3 FY13 Q2 FY 14
Q3 FY14
167.84
173.96
239
262.13
42.40%
50.68%
20.06
17.14
35.62
45.32
5.06
4.88
5.4
6.66
4.07
0.15
-

4.46
0.37
-

4.14
0.41
-

4.3
0.31
-

11.08
3.14

8.17
2.37

26.49
8.83

34.67
11.36

7.94
11.95%
4.73%

5.8
6.54%
2.21%

17.66
14.90%
7.39%

23.31
17.29%
8.89%

Company Profile
Incorporated as a private limited company in 1991, Granules India (GIL) was converted into a
public limited company in Feb.'93. It commenced its operations in Apr.'91 as a merchant
exporter of bulk drugs like paracetamol, guaifenesin and chloro pheniramine maleate. The
company exports to the US, Europe, Mexico and Hongkong. Since 1992, GIL concentrated on
export of paracetamol powder. In Aug.'94, GIL took over Triton Laboratories (TL), a group
company from which GIL was procuring the drugs for exports. GIL also acquired a sick unit
which was manufacturing bulk drugs, from the Andhra Pradesh State Financial Corporation
(APSFC) in Mar.'94.
GIL implemented the ongoing project taken over from TL to manufacture bulk drugs like folic
acid, salbutamol sulphate, brom pheniramine maleate and direct compression (DC) blends of
paracetamol, through the process of granulation. The unit, an EOU, is located at Hyderabad,
Andhra Pradesh. Commercial production of folic acid commenced in Aug.'95. It came out with a
public issue in Sep.'95 to part-finance this project.
Company has completed expansion of Guaifenesin capacity from 100 Mts to 240 Mts per
annum. Company had developing new products like Brom Pheniramine Maleate & Chloro
Pheniramine Maleate, & is in process of developing new bulk drug for the export market.
Company is very much hopeful about company's performance due to expansion of project will
be completed in the current year.
The Company set up a 100% marketing subsidiary in US to enhance its exposure in the large
pharmaceutical market in the world. The Gagillapur plant commences its commercial production
of Line II(installed capacity 3200 MT) which was commenced its July,2003 and the remaining

4000 MTPA is expected to go on stream in the first half of 2003-04. The total project cost is
Rs.30 crore.
Performance Overview
The Company had double-digit growth in all three product segments, APIs, PFIs and Finished
Dosages. While all the segments grew, the API segment constituted the largest portion of the
revenue mix in FY13. Due to the delay in the Formulation Expansion, more APIs were sold
instead of being used for captive consumption. The Company sold a large portion of its API in
the domestic market in FY13 which led to an increase in overall domestic sales. The Company
has strong backorders for its Formulation Division and expects an increase in sales in FY14
once the new capacity is on-line.
Operating costs
Operating costs increased 17.6% over the previous year which is in-line with revenue growth.
The increase in operating costs was primarily due to the rising energy costs, cost of key inputs,
employee costs and marketing expenses. In order to mitigate energy costs, the Company
focused on implementing Open Access Power at all of its Indian Facilities. At the end of FY13,
the Company was still in the process of implementing the system but finished implementation in
Q1FY14.
EBIDTA
EBIDTA increased 7.96% from Rs. 80.66 Cr in FY12 to Rs. 87.08 Cr. in FY13 although the
absolute margin fell 95 bps to 11.35% in FY13. This was primarily due two reasons.
First, instead of using its additional APIs for captive consumption, the Company sold more APIs
in FY13 which has a lower profit margin than Formulations. Second, the Companys Formulation
Expansion was delayed in FY13 and faced scale-up issues after its completion. The Company
had additional expenses including increased manpower at the facility without a concurrent
increase in production.
Interest
Interest liability increased 4.0% from `17.0 Cr. in FY12 to `17.7 Cr. in FY13 consequent to an
increase in the Companys debt portfolio. While there was an increase, the interest cover got
strengthened from 4.8x to 4.9x over the same period, reflecting the Companys ability to repay
its interest liabilities.
Net profit
The Company earned a net profit of Rs. 32.6 Cr. in FY13 vs. Rs. 30.0 Cr. in FY12, an increase
of 8.7%. In line with the net profit, the basic earnings per share increased from Rs. 14.93 to Rs.
s16.21 over the same period.

Debt Reconciliation (Rs. Cr)