Informist, Friday, Jul. 25, 2025

By Shakshi Jain

NEW DELHI – Pharmaceutical major Cipla Ltd. Friday posted a low double-digit rise in its bottom line for the June quarter on the back of single-digit growth in top line, largely in line with analysts' consensus estimates. It was, however, the company's lowest profit growth in 10 quarters. Its revenue growth was at a 21-quarter low. Shares of the company, which were largely flat earlier, rose 2.7% to INR 1,528.30 on the National Stock Exchange immediately after the quarterly results were disclosed.

The Mumbai-based drug-maker's consolidated net profit for the June quarter grew 10% on year and 6% sequentially to INR 12.98 billion. Analysts had expected the company to report a bottom line of INR 12.29 billion. The company's consolidated revenue from operations during the quarter grew 4% on year and 3% on quarter to INR 69.57 billion, slightly lower than the INR 70.25 billion expected by analysts.

Revenue of Cipla's pharmaceuticals segment grew 3% on year in Apr-Jun to contribute INR 65.79 billion to the company's overall top line while that from the new ventures segment jumped 25% to add INR 4.44 billion. Cipla's consolidated earnings before interest, taxes, depreciation, and amortisation in the June quarter rose 4% on year to INR 17.78 billion. Its EBITDA margin for the quarter stood at 25.6%, down 7 basis points on year.

Cipla's total expenses in Apr-Jun rose 4% on year to INR 54.46 billion, led by an 18% increase in costs of materials consumed at INR 14.69 billion. Employee benefit expenses during the quarter saw a nearly 10% on-year uptick to INR 13.12 billion while its other expenses rose almost 7% to INR 16.96 billion. Expenses tied to

purchase of stock-in-trade limited the rise in total expenses with a near 7% on-year decline to INR 10.25 billion in Apr-Jun.

Cipla's research and development investments in Apr-Jun totalled INR 4.32 billion, constituting 6.2% of its overall sales. They were driven by product filings and development efforts, the company said in a statement.

Sales from Cipla's domestic business, which it classifies as One India, rose 6% on year in Apr-Jun, fetching INR 30.70 billion to the company's coffers. The segment contributed 44% of the company's overall revenue for the quarter. Within the branded prescription business at home, key therapies like respiratory, urology, cardiac, anti-diabetes, and anti-infectives grew faster than the market, the company said. In the trade generics category, the India business launched seven new products during the June quarter.

Sales contribution from the One Africa business grew 11% on year to $102 million during Apr-Jun, accounting for 13% of the overall sales of the company. In rupee terms, this business clocked INR 8.71 billion during the quarter, reflecting 14% year-on-year growth. Revenue from emerging markets and Europe rose 8% on year to $101 million, comprising 12% of Cipla's overall sales in the June quarter. In rupee terms, the sales figure of this market in Apr-Jun stood at INR 8.61 billion, up 11% on year.

Meanwhile, contribution from the North America region declined nearly 10% on year in Apr-Jun to $226 million. In rupee terms, this market roped in INR 19.33 billion in the June quarter, down 7% on year. North America accounted for 28% of the company's overall sales during the quarter. Cipla said it saw continuous traction in key differentiated assets in the region during the quarter. Its hormone-controlling drug Lanreotide reached a market share of 21% in Apr-Jun, as per the company.

In a presentation to investors, Cipla said it is committed to launching two-three peptide assets in the North America market during the ongoing fiscal year. Its generic version of respiratory drug Advair is closer to commercialisation and the company is preparing for launch of Symbicort generic in 2026-27 (Apr-Mar, it added. Cipla plans to launch a couple of inhalation assets as well in FY27, as per the presentation. End

US$1 = INR 86.51

Edited by Avishek Dutta

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