Cipla's profit jumps 79% in Q4
Pharma major Cipla Ltd on Friday reported a betterthan-expected consolidated net profit of ₹939.04 crore for the December quarter, up 78.64% year-on-year (y-o-y) on the back of higher demand in key markets.
The company's consolidated revenue in the quarter rose 7.4% y-o-y to ₹6,163.24 crore, according to a company filing with the exchanges.
While its net profit beat estimates by analysts’ poll, revenue was below expectations. Analysts had expected it to post revenue and profit after tax of ₹6,234.30 crore and ₹867.93 crore, respectively.
Following the earnings announcements, shares of the company fell 1.4% on National Stock Exchange to close at ₹1,340.00 apiece on Friday as the revenue disappointed market investors. The shares hit a low of ₹1,317.25 intraday while the benchmark index Nifty closed 0.4% higher today.
Earnings before interest, taxes, depreciation, and amortization, or Ebitda, during the quarter under review grew 13% to ₹1,316 crore with an operating margin of 21.4%.
“This was backed by One-India revenue breaching ₹10,000 crore, North America revenue surpassing $900 million and South Africa reaching top spot in the prescription market, with all three businesses growing in double digits over last year,” said Umang Vohra, MD and Global CEO, Cipla Ltd in a conference call.
“I believe, revenue estimates will be higher globally, going ahead, along with higher market growth. I think overall, we are looking at around 25% of Ebitda going ahead,” he added.
Cipla expects to launch new products, including an obesity drug which has a huge market. “We have identified obesity as a big area. We are hoping for the drug launch in India, but it will be timed with the patent expiry,” he added.
“As we enter into FY25, our focus will be on our priorities of market-leading growth in our key markets, growing big brands bigger, investing in the future pipeline as well as focusing on resolutions on the regulatory front,” added Vohra. The firm had a net cash position of ₹7,708 crore as of 31 March, while debt was at ₹559 crore.