Cipla Q2 Results: Profit Rises 41% Aided By Lower Operating Expenses
Cipla Ltd.’s quarterly profit rose as the drugmaker’s operating expenses fell and sales in the domestic market improved.
Net profit rose 41% year-on-year to Rs 665 crore in the quarter ended September, according to an exchange filing. That compares with the Rs 585-crore consensus estimate of analysts tracked by Bloomberg.
Revenue increased 14.6% over the last year to Rs 5,038 crore, against the Rs 4,670-crore forecast.
Cipla’s India sales rose 17% year-on-year, with growth across prescription, trade generics and consumer health business. Its prescription business grew 14% over a year ago, supported by traction in its Covid-19 portfolio, chronic therapies, recovery in the hospital portfolio. Revenue from the U.S., one of its key markets, rose 10% over a year ago.
Operating profit rose 29% year-on-year to Rs 1,177 crore, compared with the Rs 1,037-crore estimate. Margin improved to 23% from 21% a year ago.
Cipla Q2 Results 2020-21: Other Highlights (year-on-year)
- Revenue from North America rose 10% to Rs 1,049 crore.
- India sales grew 17% to Rs 2,090 crore.
- Sales in South Africa, Sub-Saharan Africa and Global Access rose 25% to Rs 924 crore.
- Europe, emerging markets and others saw a 8% drop in sales to Rs 787 crore.
- API business grew 20% to Rs 189 crore.
“The performance reflects strong demand backed by resilient operations management. The quarter also saw sustained focus on cost optimization which helped deliver an ebitda margin of over 23%,” Umang Vohra, managing director and global chief executive officer at Cipla, said. “Our businesses in South Africa, the U.S. and other international markets maintained growth momentum with strong traction in the base business and new launches.”
Shares of Cipla fell 1% before the quarterly results were announced, compared with a 1% gain in the benchmark Nifty 50.