Cipla Q3 Results: Profit Rises 32%, In Line With Estimates

Cipla Ltd.'s third-quarter profit increased, in line with analysts' estimates.

The drugmaker's profit rose 32% year-on-year to Rs 1,068 crore in the quarter ended December, according to an exchange filing on Monday. That compares with the Rs 1,058 crore consensus estimate of analysts tracked by Bloomberg. Sequentially, the profit fell 8%.

• Revenue increased 14% to Rs 6,604 crore (Bloomberg estimate: Rs 6,522 crore).

• Ebitda up 24% to Rs 1,748 crore (Bloomberg estimate: Rs 1,599 crore).

• Ebitda margin at 26.46% versus 24.22% (Bloomberg estimate: 24.5%).

"One-India business grew at a healthy 12% year-on-year backed by strong performance across branded prescription, trade generics and consumer health," Umang Vohra, global chief executive officer at Cipla, said in the filing.

"In North America, we continue to scale newer peaks by posting highest-ever quarterly revenue yet again at $230 million, supported by positive traction in key assets and base business."

• The company's One-India business grew 12%.

• This was led by branded prescription market surpassing growth of 10%, which was driven by key therapies in chronic portfolio. Trade generics business and consumer health portfolio, too, reported growth.

• The U.S. business grew 18% in absolute terms to $230 million, or Rs 1,916 crore. Growth was supported by volume traction in key assets of Lanreotide and Albuterol, coupled with robust demand in base business.

• South Africa, or the SAGA region, business grew 35% in USD terms. "Our South Africa business further extended its momentum from last quarter by growing at 15% in local currency terms driven by strong execution across prescription, OTC and tender," Vohra said in the filing. In rupee terms, it rose 36%.

• Business in other international markets, including emerging markets and Europe, fell 2% in INR terms.

• Bulk drugs declined around 27% year-on-year.

The company's investment in research and development stood at Rs 400 crore, or 6.1% of sales. It was 10% higher year-on-year. The company has a net cash position of Rs 7,143 crore, as on Dec. 31.

On the Actor Pharma acquisition in South Africa, the company said in the filing, "Competition Commission approval has been received with integration expected to be completed in Q4 FY24."

Shares of Cipla closed 1.18% lower at Rs 1,312.60 apiece on Saturday, as compared with a 0.36% decline in the benchmark Sensex.