Cipla Q2 results: Net profit rises 8% to Rs 712 cr; meets D-Street estimate

Revenues for the quarter rose 10.3 per cent YoY to Rs 5,485.84 crore compared with Rs 4,972.58 crore in the same quarter last year.

The profit came largely in line with ET NOW poll estimate of Rs 720 crore.

Ebidta rose 4 per cent YoY to Rs 1,226 crore. Ebitda margin came in at 22.2 per cent, the drugmaker said in an analyst presentation. North America revenues rose 2 per cent to $142 million (from $139 million) for the quarter, which the company said was at a multi-quarter high while noting that a steady momentum in core products offset price erosion in the rest of the portfolio.

Global consumer health franchise gained traction, with the segment contributing 7 per cent to overall revenues in H1FY22, Cipla said. Growth in South Africa, Sub-Saharan Africa (SAGA) region stood at 8 per cent in dollar terms. That region contributed 18 per cent of its sales. India, which accounted for 44 per cent of its revenues, saw 16 per cent growth. International markets, which includes emerging markets and Europe, accounted for 15 per cent of revenues and reported 14 per cent growth.

Emerging markets business resumed middle eastern supplies, demonstrated strong DTM performance and contribution from Covid therapy products.

API segment saw 9 per cent degrowth YoY.

“I am pleased to see the strong momentum in core therapies across our branded markets and sustained cost control leading to 10 per cent revenue growth and 22.2 per cent EBITDA margin for the quarter, offsetting price erosion and normalising covid contribution. In India, we continue to drive strong performance led by sustained volume traction despite a high FY21 base. Our collaboration with Eli Lily for their diabetes products helps us further strengthen our endeavour of creating access to innovative medicines in line with the One-India strategy,” said Umang Vohra, MD and Global CEO, Cipla.

Vohra said the US business also witnessed a healthy run-rate driven by core portfolio and desired traction in respiratory franchise across Albuterol and Arformoterol.

International markets rebounded in line with expectations, he said, despite continuing geopolitical challenges.

Meanwhile, Cipla in another release said its board has approved a draft scheme of arrangement, which entails demerging of the India-based US business undertaking into its wholly-owned subsidiary, Cipla BioTec Limited and consumer business undertaking into its wholly-owned subsidiary, Cipla Health.

“The company had received requisite approvals from NSE and BSE for filing the Scheme with National Company Law Tribunal. The board continues to believe that the proposed transfer of India based US business undertaking in favour of CBL and the proposed transfer of the Consumer business undertaking in favour of CHL will simplify the structure, maximise efficiencies and has the potential to unlock value for the stakeholders of the company,” Cipla said.