Pharmaceutical major Cipla posted its second quarter earnings for FY24 on Friday, with profit at Rs 1,130.91 crore, up 43.3 per cent in comparison to Rs 788.90 crore during the corresponding quarter of FY23, beating estimates. It posted revenue from operations at Rs 6,678.15 crore, up 14.6 per cent as against Rs 5,828.54 crore during the second quarter of FY23. The company EBITDA stood at Rs 1,734 crore.
According to a CNBC TV18 poll, Cipla was expected to post Q2 profit at Rs 981.2 crore and revenue at Rs 6,405.8 crore. While the total income during the quarter in review was at Rs 6,854.47 crore, total expenditure during Q2 stood at Rs 5,260.24 crore. Cipla’s pharmaceuticals business recorded a revenue of Rs 6,452.54 crore and its new ventures brought in a revenue of Rs 263.77 crore.
“Pleased to share an exceptional set of results reflecting the strength of our core business across key markets of India, North America and South Africa. We reported our highest ever quarterly revenue with EBITDA margins scaling up to 26 per cent,” said Umang Vohra, MD and Global CEO, Cipla.
Cipla’s performance across key markets
Cipla’s One India Business grew by 10 per cent YoY driven by strong execution across branded prescription and trade generics businesses. “Branded Prescription continues to outpace market growth while seasonal trends impacted the consumer business for the quarter,” it said. Branded Prescription business posted growth at 11 per cent driven by key therapies in chronic portfolio. In the trade generic business, Cipla maintained strong on on-ground commercial execution driving double-digit growth despite weak seasonality. Margins, it said, was aided by declining raw material costs. The consumer health business’ quarterly performance was impacted by inconsistent weather patterns. Core portfolio, the company said, remained strong with 5 brands over Rs 100 crore sales in trailing twelve months
The North America business scaled a new peak with quarterly revenue of $229 million, up 28 per cent YoY.
In South Africa, the private market showcased growth at 12% YoY in ZAR terms driven by traction in prescription business and OTC. The segment outpaced the overall market by growing at 10 per cent vs market growth at 4 per cent.
“One-India business grew at a healthy 10% YoY with continued market beating performance in the branded prescription and Trade Generics business. In South Africa, the private market business grew in double digits driven by strong execution across prescription and OTC. The North America business scaled up to $229mn, growing 28% YoY, driven by strong traction across core products with share expansion in differentiated assets. Our pipeline is progressing really well with key milestones achieved in Respiratory and Peptide assets. We will continue our focus on driving profitable growth across businesses,” said Umang Vohra.