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Informist, Tuesday, Jan. 28, 2025

 

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--Cipla Oct-Dec consol net profit INR 15.71 bln vs INR 10.56 bln year ago
--Analysts saw Cipla Oct-Dec consol net profit INR 12.16 bln
--Cipla Oct-Dec consol net profit INR 15.71 bln vs INR 10.56 bln year ago 
--Cipla Oct-Dec consol revenue INR 70.73 bln vs INR 66.04 bln year ago
--Cipla Apr-Dec consol net profit INR 40.51 bln vs INR 31.83 bln year ago
--Cipla Apr-Dec consol revenue INR 208.18 bln vs INR 196.11 bln year ago
--Cipla Oct-Dec consol EBITDA INR 19.89 bln, up 16% on year
--Cipla Oct-Dec consol EBITDA margin 28.1%, up 184 bps on year
--Cipla Oct-Dec North America sales $226 mln, down 2% on year
--Cipla Oct-Dec India sales INR 31.46 bln, up 10% on year
--Cipla Oct-Dec consol R&D expense INR 3.60 bln, 5.1% of sales

 

By Steffy Maria Paul

 

MUMBAI – Cipla Ltd.'s financial results for the December quarter beat analysts' estimates for both net profit and revenue. The pharmaceutical major's consolidated net profit rose 49% on year to INR 15.71 billion for the quarter, beating analysts' estimate of INR 12.16 billion by a wide margin. This was the highest on-year growth in the company's net profit in three quarters.

 

Cipla reported a consolidated revenue of INR 70.73 billion for Oct-Dec, up 7% from INR 66.04 billion a year ago, again marking the highest growth in three quarters. Sequentially, the company's net profit rose 20.6%, while its revenue was flat.

 

For the nine months to December, the company's net profit rose 27% on year to INR 40.51 billion. For the same period, it reported a revenue of INR 208.18 billion, up 6% on year. 

 

Shares of the company, which were marginally down before the earnings were announced, rose 5.5% immediately after the announcement and were at INR 1,463.10 on the National Stock Exchange at 1416 IST. The stock eventually closed at INR 1,420.60, up 1.8%.

 

For the December quarter, Cipla reported total expenses of INR 53.79 billion, up 5% on year. Its cost of raw materials was INR 12.97 billion, up 8% on year but down 12% sequentially. The company's cost for the purchase of stock-in-trade fell slightly on year but rose 12% sequentially to INR 9.13 billion. The company's finance costs halved on year during the quarter.

 

The company earned a revenue of INR 67.78 billion from its pharmaceuticals segment during the quarter, up 6.5% on year. The revenue from the company's new ventures rose 21.7% on year to INR 3.41 billion. The company reported earnings before interest, tax, depreciation, and amortisation of INR 19.89 billion, up 16% on year. The company's EBITDA margin for the quarter rose 184 basis points on year to 28.1%, driven by a favourable mix and other operational efficiencies.

 

In the reporting quarter, the company delivered growth across geographies despite a supply chain challenge in the US, Cipla said. It reported 10% on-year rise in sales for the quarter in India to INR 31.46 billion, accounting for over 40% of total sales. This was on account of the key therapies in the branded prescription business continuing to outpace market growth, the growth trajectory of the trade generics business being back on track, and the anchor brands of the consumer health business maintaining their leadership position, the company said. In the trade generics business, the company launched 18 new products between April and December. 

 

In North America, which accounts for around 27% of the company's total revenue, Cipla reported a slight on-year decline in sales to INR 19.06 billion. In dollar terms, the revenue was $226 million, which was supported by continued positive traction in differentiated assets but was hit by supply issues around the drug lanreotide. The issues are abating, the company said.

 

Cipla's Oct-Dec sales in Africa were up 10% on year at INR 9.75 billion. The growth in this region was led by an uptick in key therapy products, new launches, and significant growth in the over-the-counter portfolio, the company said. The sales in emerging markets and Europe were up 22% on year at INR 8.24 billion. The active pharmaceutical ingredient segment reported 17% on-year growth in sales at INR 1.26 billion.

 

 

As of Dec. 31, the company had a total of 283 abbreviated new drug and new drug applications. Of these, 170 were approved, 34 were tentatively approved, and 79 were awaiting approval. As of Dec. 31, the company had a total debt of INR 4.66 billion and a cash balance of INR 94.13 billion.

 

For the December quarter, the company's spending on research and development was INR 3.60 billion, or 5.1% of sales, driven by new product filings and development initiatives. "Going ahead, the focus will be on growing our key markets, further building our flagship brands, investing in future pipeline as well as focusing on resolutions on the regulatory front," Umang Vohra, managing director and global chief executive officer, was quoted as saying in a press release from Cipla.  End

 

US$1 = INR 86.52

Edited by Rajeev Pai

 

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