Earnings Review
Cipla's net profit rises 30% on year, beats Street view
This story was originally published at 18:12 IST on 13 May 2025
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--Cipla Jan-Mar consol net profit INR 12.22 bln vs INR 9.39 bln year ago
--Analysts saw Cipla Jan-Mar consol net profit INR 10.38 bln
--Cipla Jan-Mar consol revenue INR 67.30 bln vs INR 61.63 bln year ago
--Cipla to pay INR 13 per share final dividend
--Cipla to pay INR 3 per share special dividend
--Cipla FY25 consol net profit INR 52.73 bln vs INR 41.22 bln year ago
--Cipla FY25 consol revenue INR 275.48 bln vs INR 257.74 bln year ago
--Cipla Jan-Mar consol EBITDA INR 15.38 bln vs INR 13.16 bln year ago
--Cipla Jan-Mar consol EBITDA margin 22.8% vs 21.4% year ago
--Cipla Jan-Mar North America sales INR 19.19 bln vs INR 18.75 bln yr ago
--Cipla Jan-Mar India sales INR 26.22 bln vs INR 24.17 bln year ago
--Cipla Jan-Mar North America sales $221 mln, down 2% on year
--Cipla Jan-Mar One Africa sales $118 mln, up 15% on year
--Cipla Jan-Mar consol R&D expense INR 4.26 bln, 6.3% of sales
By J. Navya Sruthi
MUMBAI – Cipla Ltd.'s bottom line for the March quarter beat the Street's expectations as the consolidated net profit for the quarter rose over 30% on year to INR 12.22 billion, beating analysts' estimate of INR 10.38 billion.
Cipla reported a consolidated revenue of INR 67.30 billion for the quarter under review, up 9% from a year ago, slightly lower than analysts' estimate of INR 67.73 billion. Despite lower sales growth in the North America business, the company managed to report 9% growth in overall sales as its Africa business grew 20% on year, in addition to 21% growth in the emerging markets and Europe business.
In the financial year 2024-25 (Apr-Mar), Cipla's India business contributed 42% to the top line, North America contributed 29%, Africa contributed 14%, and Europe and emerging markets contributed 12%. In the March quarter, Cipla's India business grew 8% year-on-year. "Branded Prescription business continued to outpace the market growth in key chronic therapies, Trade Generics is back on growth trajectory, and Anchor brands of CHL (Cipla Health Ltd.) continued to grow bigger," the company said in a press release.
Sequentially, the net profit fell over 22% and net sales declined over 5%, as Jan-Mar is a seasonally weak quarter for the company and also because of the higher base effect.
For the March quarter, Cipla reported total expenses of INR 55.15 billion, up 7% on year and 2.5% on quarter. Its cost of raw materials was INR 13.98 billion, up nearly 12% on year and nearly 8% on quarter. The company's cost of purchase of stock-in-trade rose significantly to INR 10.24 billion from INR 7.39 billion in the year-ago quarter and INR 9.13 billion in the December quarter.
Cipla's finance costs fell 20% on year to INR 140.20 million during the March quarter. The company's research and development investments were at INR 4.26 billion, or 6.3% of sales for the quarter, driven by product filings and development efforts, the company said.
The company earned a revenue of INR 65.04 billion from its pharmaceuticals segment during the March quarter, up 8% on year. The revenue from the company's new ventures rose 35% on year to INR 2.88 billion. The company reported earnings before interest, tax, depreciation, and amortisation of INR 15.38 billion, up 17% on year. The company's EBITDA margin for the quarter rose 150 basis points from the year-ago quarter to 22.8%.
For FY25, Cipla's profit after tax jumped 28% on year to INR 52.73 billion and its consolidated revenue was INR 275.48 billion, up nearly 7% from a year ago. For the full year, the company's sales grew 21%, 18%, and 7% in South Africa, emerging markets and Europe, and India, respectively.
In Africa, secondary growth was at a healthy 6.7% against the market growth of 4.9%, which was supported by an uptick in key therapies, new launches, as well as expansion of over-the-counter portfolio, the release said. The expansion across both direct-to-market and business-to-business categories along with consistent margin stability boosted the growth in emerging markets and Europe, the company said. Cipla's India business growth was mainly attributed to new introductions and techonological interventions.
Meanwhile, the company's North America revenues fell 2% on year to $221 million in the March quarter. However, it managed to report an all-time high annual revenue of $934 million due to continued positive traction in some specialised assets. In rupee terms, the business grew 2% on year in the last quarter to INR 19.19 billion. In FY25 it grew 5% on year to INR 78.99 billion.
The North America business obtained three significant drug approvals during the year--Lanreotide injection, Nilotinib capsules, and Nano Paclitaxel--the company said in a press release, and added that this will further strengthen its product pipeline. "China facility has commenced supply shipments, further strengthening the business operations," it said.
For FY25, the company will pay a final dividend of INR 13 per share and a special dividend of INR 3 per share. "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, said in a press release.
Tuesday, shares of Cipla Ltd. ended nearly 0.6% higher at INR 1,520.10 on the National Stock Exchange after the earnings announcement. End
US$1 = INR 85.33
Edited by Rajeev Pai
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