Pharmaceutical company Cipla on Wednesday posted a profit increase of 45.1 per cent at Rs 995.70 crore in comparison to Rs 686.40 crore during the corresponding quarter of FY23, beating estimates. It posted revenue from operations at Rs 6,328.89 crore, up 17.7 per cent on year from Rs 5,375.19 crore during the first quarter of FY23, on performance in India, US and South Africa. The global revenue for Cipla stood at Rs 6,329 crore. According to CNBC TV18 estimates, Cipla was expected to post Q1 profit at Rs 837 crore, and revenue at Rs 6,147 crore. The company’s core profitability expanded by 230 bps with EBITDA growth of 31 per cent. 

“I am pleased to share that we continue to make considerable progress across our focused markets. In Q1 FY24, we recorded growth of 18% over last year with EBITDA of INR 1,494 Cr driven by mix and other operational efficiencies,” said Umang Vohra, MD and Global CEO, Cipla Ltd.

Cipla’s Q1 performance across markets

Cipla’s One India business grew 12 per cent on-year across branded prescription, trade generics and consumer health. The branded prescription business continued to chart on its market beating growth journey, with a sustained momentum across all therapies by growing at 11 per cent. Trade generic business maintained its market leadership, with YoY growth of 8 per cent, supported by traction in big brands. “We continue with our launch momentum by adding 23 products in the portfolio,” it said. In the consumer health segment, Cipla Health franchise grew by 16 per cent with margins reaching closer to mid-teens for the quarter. 

The company’s South Africa Private Market grew at 13 per cent on-year in ZAR powered by uptick in focused therapies in prescription business as well as high double-digit growth of 16 per cent in OTC portfolio. 

The North America regions showcased robust momentum in differentiated portfolios leading to unprecedented growth in the US market. The business yet again achieved its highest sales in a quarter by realizing a revenue of $222 million, growing by 43 per cent over last year.

International markets, which include Emerging markets and Europe, reported revenue growth by 9 per cent (Ex-Covid) in INR terms, while the Europe business has achieved a YoY growth of ~30 per cent in INR terms in a challenging macroeconomic environment. 

“Our One-India business continued the double-digit trajectory growing at 12% during the quarter led by branded prescription with sustained growth across chronic therapies. Our continued focus on differentiated portfolio has strengthened our US business which once again posted highest ever quarterly revenue at $ 222 Mn. South Africa Private Market bounced back from lows of last year to post a double-digit growth,” said Umang Vohra. 

Going forward, Cipla has three differentiated products undergoing clinical trials, with filings targeted in FY24 & FY25. It also has 4-5 peptides that are expected to be launched and a couple of products that are expected to be filed in the next 18 months. “We are excited to continue working towards establishing a strong foundation for growth in upcoming quarters, where we look forward to continuing the leadership in Chronic Therapies in Branded Prescription business in India, further expanding our differentiated pipeline in the US and targeting to be the biggest prescription business in South Africa,” Umang Vohra concluded.