5. Swot Analysis: Cipla
S W
O T
Support to cancer
patients
P. falciparum malaria
‘No Touch Breast
Scan’
Foremost player in
anti-infective and anti-
asthmatic
formulations
Strong employee
force
Limited market
share
Negative Campaign
of AHF
Venture into
Alzheimer’s disease
medication
Can use Viramune
generic to achieve
higher growth
Increased investment
Constant price
rises in the
Indian
The Indian
Rupee
depreciated
Fluctuations in
6. Swot Analysis: Torrent
S W
O T
High market Share
High Growth Rate
Strong Innovation
Global Presence
Low Employee
Strength
High Debts
Aquisations
Product Expansion
Emerging Markets
Constant price
rise
The Indian
Rupee
depreciated
Fluctuations in
currency
7. Cipla overview
• Cipla Limited is a pharmaceutical company based in Mumbai
• Cipla makes drugs to treat cardiovascular disease, arthritis etc.
• Market capitalization is US$ 5.6 billion (2013)
• Cipla has 34 manufacturing units in 8 locations across India and
has presence in 170 countries
• It has over 2000 products in 65 therapeutic categories
8. History of Cipla
• 1935- Founded in by Dr. K. A. Hamied
• Vision:To make India self-sufficient in healthcare
• 1939- Encouraged by Mahatma Gandhi by visiting the company
• 1960- API manufacturing technology
• 1996-World’s first transparent dry powder inhaler
• 2001- HIV medicines
• 2005- Anti bird-Flu drug invented within 2-3months
• 2012- Reached 20000 employees level
9. Overview ofTorrent Pharma
• Torrent Pharmaceuticals Ltd. is the flagship company of theTorrent Group
• Initially was named asTrinity Laboratories Ltd
• Operates in more than 50 countries with over 1000 product
• It has 7 fully owned subsidiaries
10. History ofTorrent Pharma
• 1970 – Founded by Mr. U N Mehta
• 1992- President's award for highest pharmaceuticals exports of Rs. 1570
million
• 1994- Almost doubled its manufacturing capacity
• 2001- India's ninth best company among capital intensive companies in
terms of ROCE in a study by ETIG-BCG
14. Key financials of the Companies (Year-to-Year)
Cipla
Item Mar ‘13 Mar ‘ 12 Mar ‘11 Mar ‘10 Mar ‘09
Total Income (Rs. In crores) 8,722.30 7,114.56 6,561.49 5,915.49 5,208.33
Percentage change in income
from previous year
22.6% 8.42% 10.92% 13.6% -
Total expenses (Rs. In crores) 6,374.03 5,384.4 5,149.1 4,408.85 4,103.0
Net Profit (Rs. In crores) 1,507.11 1,123.96 960.39 1,081.49 776.81
Percentage change in Net
Profit
34.08% 17.03% -11.2% 39.22% -
Total Equity Dividend (Rs. In
crores)
160.58 160.58 224.81 160.58 155.46
Shares in issue (in Lacs) 8,029.21 8,029.21 8,029.21 8,029.21 7,772.91
Earnings Per Share (Rs.) 18.77 14 11.96 13.47 9.99
Book value (Rs.) 110.47 94.04 82.36 73.55 55.86
TotalAssets (Rs. In crores) 9,835.33 7,562.48 7,053.43 5,919.16 5,290.99
15. Key financials of the Companies (Year-to-Year)
Torrent Pharmaceuticals
Item Mar ‘13 Mar ‘ 12 Mar ‘11 Mar ‘10 Mar ‘09
Total Income (Rs. In crores) 2,970.84 2,162.69 1,873.17 1,429.14 1,196.22
Percentage change in income
from previous year
37.4% 15.5% 31.06% 19.5% -
Total expenses (Rs. In crores) 2,197.51 1,698.06 1,418.23 1,032.11 929.16
Net Profit (Rs. In crores) 546.42 311.25 290.86 207.37 186.73
Percentage change in Net
Profit
75.6% 7.01% 40.3% 11.05% -
Total Equity Dividend (Rs. In
crores)
194.61 71.92 67.69 50.77 33.84
Shares in issue (in Lacs) 846.11 846.11 846.11 846.11 846.11
Earnings Per Share (Rs.) 64.58 36.79 34.38 24.51 22.07
Book value (Rs.) 195.14 154.17 129.18 104.11 86.59
TotalAssets (Rs. In crores) 2,230.25 1,764.65 1,665.09 1,403.26 1,214.75
16. Key financials of the Companies (Q to Q)
Cipla
Item Sept ‘13 June ‘ 13 Mar ‘13 Dec ‘12 Sept ‘12
Net Profit for the period (Rs.
Crores)
376.03 474.9 267.56 338.78 500.01
Percentage change in Net
profit
-20.81% 77.5% -21.02% -32.24% -
Torrent Pharmaceuticals
Item Sept ‘13 June ‘ 13 Mar ‘13 Dec ‘12 Sept ‘12
Net Profit for the period (Rs.
Crores)
114 182 214 153 83.84
Percentage change in Net
profit -37.36% -14.95% 39.86% 82.5% -
17. Cash Flow Comparison
Item Cipla
Torrent
Pharmaceuticals
Net Cash FromOperating
Activities (Rs. In crores)
1,381.34 -68.69
Net Cash (used in)/from
investing Activities (Rs. In
crores)
-2,064.16 -89.48
Net Cash (used in)/from
Financing Activities (Rs. In
crores)
732.83 25.49
Net (decrease)/increase In Cash
and Cash Equivalents (Rs. In
crores)
50.01 -132.68
18. Financial Ratios Comparison
Ratios Cipla Torrent Pharma
InventoryTurnover Ratio 3.5 3.98
DebtorsTurnover Ratio 5.18 4.46
InvestmentsTurnover Ratio 3.5 3.98
Fixed AssetsTurnover Ratio 1.65 2.35
Total AssetsTurnover Ratio 0.83 1.25
AssetTurnover Ratio 0.94 1.38
19. Ratio Analysis-
FY2013
Face value
2 5
Comment: The Interest rates are lower than the Bond’s
Coupon Rate for Torrent- Bonds are sold at a premium.
The nominal value or rupee value of a
security stated by the issuer.
20. Ratio Analysis-
FY2013
Current Ratio
1.95 1.59
Comment: Cipla can better meet its liabilities which are
due over the next 12 months and save more money.
=Current Assets/ Current Liabilities
24. Ratio Analysis-
FY2013
Return on Capital Employed
(ROCE)
20.79
%
33.14
%
Comment: The Rate at which Torrent borrows is good
=EBIT/ (Total Assets-Current Liabilities)
25. The Better One – In terms of growth rate
Year toYear
highest
39.22% 75.6%
Quarter to
Quarter highest
77.5% 82.5%
26. The Better One – In terms of ratios
More Liquidity Better Net
Profit Margin
Less Debt Better ROCE
Notes de l'éditeur
by issuing drugs at low cost, Imminent commencement of the Fixed-Dose combination for treatment of uncomplicated P. falciparum malaria to tackle the 200+ million cases of malaria globally
by issuing drugs at low cost, Imminent commencement of the Fixed-Dose combination for treatment of uncomplicated P. falciparum malaria to tackle the 200+ million cases of malaria globally
if interest rates are higher than the bond's coupon rate, then the bond is sold at a discount (below par).
The current ratio indicates a company's ability to meet short-term debt obligations. The current ratio measures whether or not a firm has enough resources to pay its debts over the next 12 months. 3.18, 1.39
The ratio tells creditors how much of the company's short term debt can be met by selling all the company's liquid assets at very short notice.
A company's debt to equity ratio shows you what proportion of debt or equity a company is using to finance its assets.
It shows the amount of each sales dollar left over after all expenses have been paid.
is a measure of the returns that a business is achieving from the capital employed. ROCE indicates the efficiency and profitability of a company's capital investments.