India Business Will Show Market-Beating Growth In Next Few Quarters, Says Cipla CEO
Cipla expects its India business to grow faster than the pharma market on the back of investments and product licensing.
Cipla Ltd. expects its India business to grow faster than the domestic pharmaceutical market in the next few quarters on the back of investments and product licensing.
“India [unit of Cipla] should show market-beating growth in the next couple of quarters,” the drugmaker’s Chief Executive Officer and Managing Director Umang Vohra told BloombergQuint in an interview.
Vohra said the company maintains its 18-20 guidance for margin. “We are trying to be on the upper side of the 18-20 percent range. We will show respectable growth like we are showing now. I think overall, we want to improve our return on capital employed.”
Cipla’s revenue from its domestic business grew 13 percent to Rs 1,777 crore in the quarter ended December. Revenue from its domestic branded business and trade generics arms grew 14 percent and 7 percent, respectively.
Shares of the drugmaker are down over 7 percent so far this year and nearly 17 percent over the last 12 months. Around 64 percent or 28 analysts tracking Cipla have a buy rating on the stock, while 14 have a hold and 2 recommend a sell, according to Bloomberg data.
“We are hoping for strong double-digit growth,” Vohra said. “The entire India business is now being put under what’s called the ‘One-India framework’, which will encompass the generics, consumer and prescription businesses,” he said. “It had a very strong momentum to drive growth both through the penetration in India, as well as focus.”
Watch | Cipla’s Managing Director Umang Vohra on the company’s growth outlook...
(Corrects an earlier version that misstated margin guidance as volume growth expectations)