Cipla

The company posted a 25% (YoY) rise in net profit at Rs.339 crore on a 19% rise in net sales at Rs.2030 crore. Yet, the stock tanked badly on Friday. Two reasons – firstly, the numbers were a little below the street expectations and more importantly, the company also announced the stepping down of its legendary MD, Y. K. Hamied, coming into effect from 31st March 2013. He will continue as Cipla’s Chairman, in a non-executive role, from April 1 and his brother, MK Hamied who's at present the joint MD, will continue as company's MD.  Children of MK Hamied are already part of the company's core management team.  The new CEO will be Subhanu Saxena and he has assumed the new position from February 1, 2013 

In Q3, the company saw a 38% growth in the export of finished medicines but exports of active pharmaceutical ingredients (API) fell 16% and this was blamed on a one-time sale in the corresponding period last year. Total exports saw a rise of 28% and domestic revenue rose 10%, driven by growth in anti-asthma, antibiotics and cardiovascular therapy. Raw material cost was down 3% due to changes in the product mix. Annual increments and increase in manpower led to staff cost rose by Rs.71 crore. In terms of business mix, 91% comes from formulations and 9% from APIs.  The good news is that its Indore factory has got the US FDA approval and hopefully this too will also start reflecting in its performance soon.  The company is surely moving fast to achieve its target of a topline of Rs.10,000 crore by 2015. Its net profit at Rs.1239 crore for 9MFY13, has already surpassed FY12 net profit at Rs.1124 crore.