Pharmaceutical giant Cipla Ltd exceeded expectations with its consolidated net profit reaching ₹939.04 crore in the March quarter, marking a 78.64% year-on-year increase due to heightened demand in key markets.
Consolidated revenue during the quarter also showed a 7.4% year-on-year increase, totaling ₹6,163.24 crore as per the exchange filing.
Although the net profit surpassed Bloomberg’s analyst estimates, revenue fell short of expectations. Analysts had anticipated revenue and profit after tax figures of ₹6,234.30 crore and ₹867.93 crore, respectively.
Post-earnings, Cipla shares dropped 1.4% on the National Stock Exchange, closing at ₹1,340.00 apiece on Friday, reflecting market disappointment over revenue figures. The stock hit an intraday low of ₹1,317.25. Conversely, the benchmark index Nifty closed 0.4% higher on the same day.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter grew by 13% to ₹1,316 crore, with an operating margin of 21.4%.
Umang Vohra, MD and Global CEO of Cipla Ltd, noted in a conference call that these results were bolstered by significant milestones such as One-India revenue surpassing ₹10,000 crore, North America revenue exceeding $900 million, and South Africa ranking top in the prescription market. All three business segments recorded double-digit growth compared to the previous year.
Looking ahead, Vohra expressed optimism about global revenue estimates and market growth, targeting approximately 25% EBITDA growth.
Cipla anticipates launching new products, particularly an obesity drug, in response to market demands. Vohra highlighted the strategic timing of drug launches alongside patent expiries.
Moving into FY25, the company’s strategic priorities include market-leading growth in key markets, expanding major brands, investing in future pipelines, and addressing regulatory matters.
As of March 31, the company held a net cash position of ₹7,708 crore, with total debt standing at ₹559 crore for the quarter.
Despite geographical challenges, including muted growth in the One India business and soft seasonal demand impacting the consumer health portfolio, the branded prescription business continued to outpace market growth, driven by a robust chronic portfolio.
The company’s board has proposed a dividend of ₹13 per share for FY24, subject to approval.
