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Cipla announces Q1 results; Net profit declines 4 percent YoY to Rs 686 crore

The pharma company announced that it sustained momentum in its core portfolio across branded prescription, trade generics, and consumer health over the last year. Meanwhile, 9 percent YoY growth was adjusted for the COVID-19 portfolio.

Cipla announces Q1 results; Net profit declines 4 percent YoY to Rs 686 crore
Meanwhile, sales for the quarter fell 2.79 percent YoY to Rs 5,317.87 compared with 5,470.72 crores in the same quarter last year. (File)

Cipla Ltd. on Friday reported a 3.96 percent year-on-year (YoY) drop in consolidated net profit at Rs 686.40 crore compared with Rs 714.72 crore in the same quarter last year. Prior to the results, analysts had expected the company to post a muted rise in revenues on a yearly basis to Rs 5,670.5 crore due to weakness in domestic sales.

The pharma company announced that it sustained momentum in its core portfolio across branded prescription, trade generics, and consumer health over the last year. Meanwhile, 9 percent YoY growth was adjusted for the COVID-19 portfolio.

“I am pleased to see the sustained momentum across our key segments with strong secondary growth across geographies. The core portfolio momentum in One-India the business continues to be robust driven by strong demand levers. Our US run rate continues to witness consistent traction in respiratory, complex generics, and peptide portfolios. We are closely tracking upcoming complex launches in H2FY23. Our reported operating profitability of 21.3% is well within our full-year guidance of 21-22% range and has grown double digit vs last year’s base EBITDA despite multiple cost headwinds. Our cost rigor and calibrated pricing actions have helped offset inflationary cost elements, and insulate margins while maintaining high serviceability.” Umang Vohra, MD, and Global CEO, Cipla Ltd said in a statement.

Meanwhile, sales for the quarter fell 2.79 percent YoY to Rs 5,317.87 compared with 5,470.72 crores in the same quarter last year.

On expectations from the upcoming quarter, Umang Vohra, MD and Global CEO, Cipla Ltd told Financial Express.com: “In the upcoming quarter we will tend to our market growth…probably higher than the market growth and indicatively we think that the market will grow at 10 percent. I am mentioning these numbers on our base business, not on COVID-included numbers. So, we will grow ahead of the market on that.”

On the impact of COVID-19 drug sales, Vohra told Financial Express.com that the impact of COVID-19 drug sales are “negligible” this quarter. “It was very significant in the quarter before,” he informed.

On upcoming product launches, Vohra told Financial Express.com: “In India, there are several product launches lined up starting with Sitagliptin which we are launching now, and there many others that will come in both chronic and acute segments.”

He also informed that they are focusing on both focusing on base segments and broadening their emerging therapies of dermatology and ophthalmology.

“We want to broaden our offerings and focus on the core growth of our existing business,” he added.

In the quarter that ended on June 30th, 2022 there were no exceptional items. This was against ₹57.50 crore in exceptional items in March and ₹124.6 crores in the year-ago quarter.

In the US business, the pharma major reported $155 million in revenue and 10 percent YoY growth. Moreover, steady momentum was reported in the core formulation business led by contributions from respiratory and peptide assets.

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