Cipla Q2 Results: Profit Rises 13%, Meets Estimates

Cipla Ltd.'s consolidated net profit rose 13% in the second quarter of the current financial year, meeting analysts' estimates.

The drugmaker posted a profit of Rs 1,305.01 crore in the quarter-ended September, according to an exchange filing on Tuesday. That compares with the Rs 1,247 crore consensus estimate of analysts tracked by Bloomberg.

Cipla Q2 FY25 Highlights (Consolidated, YoY)

• Revenue up 5.6% to Rs 7,051.02 crore versus Rs 6,678.15 crore (Bloomberg estimate: Rs 7,068 crore).

• Ebitda up 9% to Rs 1,885.59 crore versus Rs 1,733.75 crore (Estimate: Rs 1,832 crore).

• Margin at 26.7% versus 26.0% (Estimate: 25.9 %).

• Profit up 13% to Rs 1,305.01 crore versus Rs 1,155.37 crore (Estimate: Rs 1,247 crore).

The branded prescription segment saw a slower growth this quarter, largely due to weaker market growth in anti-infectives, Cipla's key therapy area, which grew by 4.9% compared to over 12% in the previous year. However, chronic therapies such as respiratory, cardiac, and urology maintained strong growth and outperformed market trends.

In trade generics, seasonal factors affected the acute category’s performance, though Cipla anticipates a return to its growth path in upcoming quarters. The consumer health segment registered a 21% year-on-year growth, with flagship brands Nicotex, Omnigel, and Cipladine sustaining their leadership in respective categories.

"Going ahead, 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," said Cipla's Chief Executive Officer Umang Vohra.

Cipla’s North American business generated quarterly revenue of $237 million, marking a 4% year-on-year increase. Albuterol, a key product, maintained a market share of approximately 19% as of the IQVIA week ending 20th September 2024.

In Africa, Cipla’s performance improved, with its ‘One Africa’ division recording 22% year-on-year growth, led by gains in the South Africa private market.

"Our One-India business was impacted during the quarter due to changed seasonal pattern, however key chronic therapies in Branded Prescription business continued to grow faster than the market," Vohra said.

The company's strategic focus on emerging markets and Europe also delivered results, with growth of 18% in US dollar terms. This was driven by both direct-to-market and business-to-business activities, contributing to sustained overall margins in these regions.

Shares of Cipla were trading 1.6% lower at Rs 1,479.25 apiece on the NSE, as compared to a 0.2% gains in the benchmark NSE Nifty 50.