Cipla expects to exceed EBITDA margin guidance for FY25
This story was originally published at 16:46 IST on 28 January 2025
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--Cipla: US business in Oct-Dec flattish due to lanreotide supply issues
--CONTEXT: Comments by Cipla's mgmt at post-earnings press conference
--Cipla: Oct-Dec growth uniform across business segments
--Cipla: Supply issues for lanreotide abating, may normalise by Apr-Jun
--Cipla: Expect to exceed margin guidance for FY25
--CONTEXT: Cipla had guided 24.5-25.5% EBITDA margin for FY25
--Cipla: See Jan-Mar earnings growth similar to Oct-Dec
--Cipla: Too early to predict impact of new US administration on pharma
By Akshita Kumar and Narayana Krishna
MUMBAI/HYDERABAD – Cipla Ltd. expects to exceed its margin guidance for 2024-25 (Apr-Mar) aided by growth across business segments, the company's management said in a post-earnings press conference Tuesday. The company had earlier guided an earnings before interest, tax, deprecation, and amortisation margin of 24.5-25.5% for FY25. The company reported a consolidated EBITDA margin of 28.1%, up 184 basis points on year.
The company said Oct-Dec margins were exceptional, driven by traction in some products and it was confident of exceeding the margin guidance for the year. The pharmacuetical major's results for the December quarter beat analysts' expectations for both net profit and revenue. During market hours, the company reported a consolidated bottom line of INR 15.71 billion for the December quarter on revenues of INR 70.73 billion.
The company's management said it expected the March quarter's growth to be at the same pace as the December quarter. The company's growth in Oct-Dec was uniform across its business segments.
The company's India business was up 10% on year, while its US business was flat on year because of supply chain issues with Lanreotide drug. The company expects the supply issues for lanreotide to abate by the first quarter of the next financial year.
When asked about the new administration in the US and its probable policies for the pharmacuetical sector, the management said it was very early to comment and predict. "We have to wait and see how that plays out," said Umang Vohra, chief executive officer at Cipla, in a post-earnings conference call. Shares of Cipla closed at INR 1,420.60 on the National Stock Exchange, up 1.8%. End
US$1 = INR 86.52
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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