Cipla disappoints; says Indore SEZ to add 10% to FY12 sales

Net profit of pharmaceutical major Cipla tanked 22% to Rs 214 crore in the fourth quarter (January to March) of fiscal year 2011 versus Rs 275 crore posted in the same quarter last year. However, its net sales were up 23% at Rs 1,615 crore versus Rs 1,317 crore, YoY.

Rationalising the company's dismal performance during the quarter, chairman and managing director YK Hamied said that the special economic zone (SEZ) at Indore and higher material costs led to lower profitability. "Also, selling anti AIDS and malaria drugs to Africa at humanitarian prices too had an impact," he told CNBC-TV18 in an exclusive interview. Talking about the future, Hamied sounded confident saying that the Indore SEZ would add 10% to sales in FY12. "We have witnessed encouraging sales in April." Clearing the air on talks about Cipla planning to sell some stake to a multinational company, he said, "We may buy a company but will not sell to any local or foreign firm. In fact, during my lifetime, I won