Informist, Tuesday, Oct. 29, 2024

By Narayana Krishna

HYDERABAD – Cipla Ltd. on Tuesday reported a 15% year-on-year rise in its consolidated net profit to INR 13.03 billion for the September quarter, its lowest growth in the last six quarters. The numbers were hit by slow growth in India and a lower-than-targeted growth in North America.

The Mumbai-based drug company's revenue for the quarter increased 5.6% on year to INR 70.51 billion, which was also its lowest growth in sales in the last six quarters. Analysts had estimated Cipla's net profit at INR 12.4 billion, while the estimate for revenue was INR 70.5 billion. Sequentially, the company's net profit was up 11% and revenue rose 5%.

Cipla reported a 5% on-year rise in sales to INR 29.48 billion for the quarter in India, which accounts for over 40% of total sales. Cipla said the India growth was low due to weak market growth in the anti-infective segment, where the company is a market leader. The trade generics business was also impacted by the seasonality and slow growth in acute therapy related products. In North America, which accounts for around 30% of the company's total revenue, Cipla reported a 5% on-year growth in sales to INR 19.86 billion. In dollar terms, the revenue was $237 mln, led by differentiated products such as generic cancer drug Revlimid, but below the company's earlier guidance of $240 mln revenue run rate.

For Jul-Sept, Cipla reported earnings before interest, tax, depreciation and amortisation or EBITDA margin of 26.7% against 26% a year ago, an improvement of 70 basis points.

The company's EBITDA for the quarter was INR 18.86 billion, up 12% on year. Analysts had estimated Cipla's EBITDA at INR 18.27 billion. Cipla's Jul-Sept sales in Africa region were up 24% on year at INR 10.68 billion. The growth in this region was led by uptick in key therapy products, new launches as well as significant growth in over-the-counter portfolio, the company said.

The sales in emerging markets and Europe were up 19% on year at INR 8.06 billion led by the company's recent changes in marketing strategy, Cipla said. The active pharmaceutical segment reported a 9% on year growth in sales to INR 1.6 billion. For Jul-Sept, the company's spending on research and development was INR 3.85 billion, 5.6% of sales and up 2% on year, driven by new product filings and development initiatives.

The company's total expenditure for the quarter rose 3.7% on year to INR 54.52 billion. Other expenses rose 8.7% on year to INR 16.74 billion, while input costs were stable at INR 14.74 billion. The company said its net cash balance as on Sept. 30 was INR 79.50 billion.

For Apr-Sept, Cipla reported a consolidated net profit of INR 24.80 billion, up 16.6% on year. Revenue for the same period was up 5.67% on year at INR 137.45 billion. On Tuesday, shares of Cipla ended at INR 1,477.55 on the National Stock Exchange, down 1.7% from their previous close. End

US$1 = INR 84.07

Edited by Manisha Baxla and Ashish Shirke

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