Cipla Q1 profit up 41 pct as exports jump

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UPDATE 1-India's Cipla Q1 profit up 41 pct as exports jump

Monday 25 July 2005, 8:26am EST

BOMBAY, July 25 (Reuters) - Indian drug maker Cipla Ltd. (CIPL.BO:

Quote, Profile, Research) reported on Monday a better-than-expected

41 percent increase in profit for the quarter ended June, helped by

a jump in exports.

Cipla said its first quarter net profit rose to 1.11 billion rupees

($26 million) from 792.6 million a year earlier. Net sales rose 24

percent to 6.63 billion rupees from 5.33 billion.

A Reuters poll had forecast it would report a net profit of 1.07

billion rupees on sales of 6.58 billion.

Ahead of the results, Cipla's shares rose 0.53 percent to 342.1

rupees.

Cipla said its drug formulation exports rose 52 percent from a year

earlier to 2.16 billion rupees, and exports of bulk ingredients rose

13 percent to 693.6 million.

Exports constituted 42 percent of sales compared with 37 percent a

year earlier. Cipla said its anti-cancer, anti-AIDS and anti-asthma

drugs did well.

Cipla's export strategy is built on partnerships with foreign drug

makers who market the drugs it develops for them.

Domestic sales also rose 12 percent to 3.94 billion rupees. Analysts

had expected the sector's domestic performance to improve this

quarter as sales rebounded after a slack January-March period, when

traders held back on stocking drugs due to uncertainties over a new

value-added tax.

In India, Cipla said cardiovascular, anti-hypertensives,

antibiotics, anti-AIDS and anti-asthma drugs did well.

($1=43.5 Indian rupees)

http://today.reuters.com/business/newsArticle.aspx?

type=health & storyID=nBOM247772