Cipla - Steady Q2; Strong Respiratory Pipeline: ICICI Securities
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ICICI Securities Report
Cipla Ltd.’s Q2 FY22 result was above our estimates led by strong performance in India. However, we expect India growth to taper down in coming quarters with declining contribution from Covid-19 portfolio and higher base.
Ebitda margin declined 120 basis points YoY to 22.2%, however in line with our estimates. We expect Ebitda margin to stabilise at 22-23% versus earlier levels of 17-19%.
Consolidated revenues grew 9.6% to Rs 55.2 billion and adjusted profit after tax grew 6.9% to Rs 7.1 billion.
Cipla has shown strong performance over past five to six quarters in India business led by Covid-19 portfolio as well as benefits of one India strategy undertaken in FY20 which would help in sustaining above industry growth.
U.S. business would gradually scale-up on back of complex launches.
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