Cipla

26 Jan 2022 , 05:19 PM

For the quarter ending Dec 2021, consolidated Net sales (including other operating income) of Cipla has increased 6% to Rs 5478.86 crore compared to quarter ended Dec 2020.  Sales of Phamaceuticals segment has gone up 5.39% to Rs 5,377.28 crore (accounting for 97.69% of total sales).  Sales of New Ventures segment has gone up 39.40% to Rs 127.09 crore (accounting for 2.31% of total sales).  Inter-segment sales rose Rs 24.53 crore to Rs 25.51 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 0.50% to Rs 1,074.79 crore.  PBIT of Phamaceuticals segment fell 1.20% to Rs 1,098.12 crore (accounting for 102.17% of total PBIT).  PBIT of New Ventures segment rose 44.51% to Rs -23.33 crore (accounting for -2.17% of total PBIT).  

PBIT margin of Phamaceuticals segment fell from 21.78% to 20.42%.  PBIT margin of New Ventures segment rose from negative 46.11% to negative 18.36%.  Overall PBIT margin fell from 20.59% to 19.53%.  

Operating profit margin has declined from 23.81% to 22.47%, leading to 0.01% rise in operating profit to Rs 1,230.97 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 26.37% to 27.34%.   Purchase of finished goods cost rose from 11.78% to 12.85%.   Employee cost decreased from 16.45% to 15.64%.   Other expenses rose from 21.43% to 22.09%.   

Other income rose 5% to Rs 91.29 crore.  PBIDT rose 0.34% to Rs 1322.26 crore.  Provision for interest fell 56.84% to Rs 20.68 crore.  

PBDT rose 2.49% to Rs 1301.58 crore.  Provision for depreciation fell 0.39% to Rs 247.47 crore.  

Profit before tax grew 3.20% to Rs 1,054.11 crore.  Share of profit/loss was 130% lower at Rs -2.07 crore.  Provision for tax was expense of Rs 295.16 crore, compared to Rs 268.96 crore.  Effective tax rate was 28.06% compared to 26.35%.

Minority interest increased 717.34% to Rs 28.28 crore.  Net profit attributable to owners of the company decreased 2.61% to Rs 728.60 crore.  

Promoters stake was 35.92% as of 31 December 2021 ,compared to 36.64% as of 31 December 2020 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Cipla has increased 13.40% to Rs 16503.01 crore.  Sales of Phamaceuticals segment has gone up 12.84% to Rs 16,175.32 crore (accounting for 97.46% of total sales).  Sales of New Ventures segment has gone up 36.84% to Rs 420.92 crore (accounting for 2.54% of total sales).  Inter-segment sales rose Rs 89.02 crore to Rs 93.23 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 13.15% to Rs 3,258.31 crore.  PBIT of Phamaceuticals segment rose 11.85% to Rs 3,356.56 crore (accounting for 103.02% of total PBIT).  PBIT of New Ventures segment rose 19.12% to Rs -98.25 crore (accounting for -3.02% of total PBIT).  

PBIT margin of Phamaceuticals segment fell from 20.94% to 20.75%.  PBIT margin of New Ventures segment rose from negative 39.49% to negative 23.34%.  Overall PBIT margin fell from 19.67% to 19.63%.  

Operating profit margin has declined from 23.75% to 23.04%, leading to 10.04% rise in operating profit to Rs 3,803.06 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 24.95% to 24.81%.   Purchase of finished goods cost rose from 14.32% to 16.88%.   Employee cost decreased from 16.40% to 15.14%.   Other expenses rose from 21.07% to 21.32%.   

Other income rose 5.36% to Rs 216.89 crore.  PBIDT rose 9.77% to Rs 4019.95 crore.  Provision for interest fell 33.77% to Rs 88.25 crore.  

PBDT rose 11.42% to Rs 3931.7 crore.  Provision for depreciation fell 2.66% to Rs 761.64 crore.  

Profit before tax grew 15.43% to Rs 3,170.06 crore.  Share of profit/loss was 22.64% higher at Rs -6.8 crore.  Provision for tax was expense of Rs 862.69 crore, compared to Rs 760.54 crore.  Effective tax rate was 28.39% compared to 27.78%.

Net profit attributable to owners of the company increased 8.19% to Rs 2,154.68 crore.  

Promoters stake was 35.92% as of 31 December 2021 ,compared to 36.64% as of 31 December 2020 .  

Full year results analysis.

Net sales (including other operating income) of Cipla has increased 11.84% to Rs 19159.59 crore.  Sales of Phamaceuticals segment has gone up 11.32% to Rs 18,878.24 crore (accounting for 97.92% of total sales).  Sales of New Ventures segment has gone up 83.09% to Rs 401.27 crore (accounting for 2.08% of total sales).  Inter-segment sales rose Rs 45.85 crore to Rs 119.92 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 45.26% to Rs 3,450.76 crore.  PBIT of Phamaceuticals segment rose 41.16% to Rs 3,633.71 crore (accounting for 105.30% of total PBIT).  PBIT of New Ventures segment rose 7.89% to Rs -182.95 crore (accounting for -5.30% of total PBIT).  

PBIT margin of Phamaceuticals segment rose from 15.18% to 19.25%.  PBIT margin of New Ventures segment rose from negative 90.63% to negative 45.59%.  Overall PBIT margin rose from 13.83% to 17.90%.  

Operating profit margin has jumped from 18.71% to 22.19%, leading to 32.64% rise in operating profit to Rs 4,252.43 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 25.19% to 25.25%.   Purchase of finished goods cost rose from 10.70% to 13.74%.   Employee cost decreased from 17.42% to 16.80%.   Other expenses fell from 28.24% to 22.24%.   

Other income fell 22.72% to Rs 265.99 crore.  PBIDT rose 27.27% to Rs 4518.42 crore.  Provision for interest fell 18.58% to Rs 160.7 crore.  Loan funds declined from Rs 2,816.43 crore as of 31 March 2020 to Rs 1,537.48 crore as of 31 March 2021.  Inventories rose to Rs 4,669.18 crore as of 31 March 2021 from Rs 4,377.60 crore as of 31 March 2020.  Sundry debtors were lower at Rs 3,445.68 crore as of 31 March 2021 compared to Rs 3,891.31 crore as of 31 March 2020.  Cash and bank balance rose to Rs 1,401.23 crore as of 31 March 2021 from Rs 1,003.91 crore as of 31 March 2020.  Investments rose to Rs 2,710.05 crore as of 31 March 2021 from Rs 1,471.02 crore as of 31 March 2020 .  

PBDT rose 29.97% to Rs 4357.72 crore.  Provision for depreciation fell 9.11% to Rs 1067.66 crore.  Fixed assets declined from Rs 7,573.42 crore as of 31 March 2020 to Rs 7,477.12 crore as of 31 March 2021.  Intangible assets increased from Rs 2,934.00 crore to Rs 3,007.29 crore.  

Profit before tax grew 51.05% to Rs 3,290.06 crore.  Share of profit/loss was 73.05% higher at Rs -12.79 crore.  Provision for tax was expense of Rs 888.76 crore, compared to Rs 631.2 crore.  Effective tax rate was 27.12% compared to 29.62%.

Minority interest increased 65.19% to Rs -16.36 crore.  Net profit attributable to owners of the company increased 55.50% to Rs 2,404.87 crore.  

Equity capital increased from Rs 161.25 crore as of 31 March 2020 to Rs 161.29 crore as of 31 March 2021.  Per share face Value remained same at Rs 2.00.  

Promoters stake was 36.66% as of 31 March 2021 ,compared to 36.65% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 3,755.20 crore for year ended March 2021 from Rs 3,068.45 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 818.92 crore, compared to Rs 1,000.01 crore during the year ended March 2020.  

Other Highlights

In Q3 FY22, India business grew by 13% YoY led by sustained momentum across core therapies and traction in flagship brands and South Africa private business grew 16% YoY.

In Q3 FY22, SAGA (South Africa and Global Access) fell 4% YoY and API business fell 27% YoY.

In Q3 FY22, India contributed 46% of total revenue, North America 21%, SAGA 16%, International markets 13%, API 3%, Others 1%.

Management Commentary:

Umang Vohra MD and Global CEO, Cipla said I am pleased to see the strong launch and commercial momentum across our core markets during the quarter. Our portfolio execution in branded markets of India & South Africa and strong respiratory traction driving our US generic franchise to a multi-quarter high quarter were key drivers. The unlocking of our first 505(b)(2) peptide asset, lanreotide injection is an important step in strengthening our complex generics engine, inching up our US footprint. Our EBITDA margins for the quarter came in at 22.7% and given the YTD traction, we are well placed to close the year in-line with our guidance of 22%. We continue our efforts to improve patient access for therapies including covid products and ensuring adequate supply across all our markets.

Cipla : Consolidated Results

 

	Quarter ended	Year to Date	Year ended
Particulars	202112	202012	Var.(%)	202112	202012	Var.(%)	202103	202003	Var.(%)
Net Sales (including other operating income)	5,478.86	5,168.69	6	16,503.01	14,553.14	13.4	19,159.59	17,131.99	11.84
OPM (%)	22.47	23.81	-135 bps	23.04	23.75	-70 bps	22.19	18.71	348 bps
OP	1,230.97	1,230.88	0.01	3,803.06	3,456.19	10.04	4,252.43	3,205.99	32.64
Other Inc.	91.29	86.94	5	216.89	205.86	5.36	265.99	344.2	-22.72
PBIDT	1,322.26	1,317.82	0.34	4,019.95	3,662.05	9.77	4,518.42	3,550.19	27.27
Interest	20.68	47.92	-56.84	88.25	133.25	-33.77	160.7	197.36	-18.58
PBDT	1,301.58	1,269.90	2.49	3,931.70	3,528.80	11.42	4,357.72	3,352.83	29.97
Depreciation	247.47	248.43	-0.39	761.64	782.47	-2.66	1067.66	1174.65	-9.11
PBT	1,054.11	1,021.47	3.2	3170.06	2746.33	15.43	3290.06	2178.18	51.05
Share of Profit/(Loss) from Associates	-2.07	-0.9	-130	-6.8	-8.79	22.64	-12.79	-47.46	73.05
PBT before EO	1052.04	1020.57	3.08	3163.26	2737.54	15.55	3277.27	2130.72	53.81
EO Income	0	0	–	-124.62	0	–	0	0	–
PBT after EO	1052.04	1020.57	3.08	3038.64	2737.54	11	3277.27	2130.72	53.81
Taxation	295.16	268.96	9.74	862.69	760.54	13.43	888.76	631.2	40.8
PAT	756.88	751.61	0.7	2175.95	1977	10.06	2388.51	1499.52	59.28
Minority Interest (MI)	28.28	3.46	717.34	21.27	-14.49	PL	-16.36	-47	65.19
Net profit	728.6	748.15	-2.61	2154.68	1991.49	8.19	2404.87	1546.52	55.5
P/(L) from discontinued operations net of tax	0	0	–	0	0	–	0	0	–
Net profit after discontinued operations	728.6	748.15	-2.61	2154.68	1991.49	8.19	2404.87	1546.52	55.5
EPS (Rs)*	9.03	9.27	-2.61	27.8	24.68	12.64	29.81	19.17	55.5
* EPS is on current equity of Rs 161.36 crore, Face value of Rs 2, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

Cipla : Consolidated Segment Results

 

	Quarter ended	Year to Date	Year ended
	% of (Total)	202112	202012	Var.(%)	% of (Total)	202112	202012	Var.(%)	% of (Total)	202103	202003	Var.(%)
Sales
Phamaceuticals	97.69	5,377.28	5,102.05	5.39	97.46	16,175.32	14,334.57	12.84	97.92	18,878.24	16,958.67	11.32
New Ventures	2.31	127.09	91.17	39.4	2.54	420.92	307.59	36.84	2.08	401.27	219.17	83.09
Total Reported Sales	100	5,504.37	5,193.22	5.99	100	16,596.24	14,642.16	13.35	100	19,279.51	17,177.84	12.23
Less: Inter segment revenues		25.51	24.53	4		93.23	89.02	4.73		119.92	45.85	161.55
Net Sales	100	5,478.86	5,168.69	6	100	16,503.01	14,553.14	13.4	100	19,159.59	17,131.99	11.84
PBIT
Phamaceuticals	102.17	1,098.12	1,111.43	-1.2	103.02	3,356.56	3,001.06	11.85	105.3	3,633.71	2,574.17	41.16
New Ventures	-2.17	-23.33	-42.04	44.51	-3.02	-98.25	-121.48	19.12	-5.3	-182.95	-198.63	7.89
Total PBIT	100	1,074.79	1,069.39	0.5	100	3,258.31	2,879.58	13.15	100	3,450.76	2,375.54	45.26
Less : Interest		20.68	47.92	-56.84		88.25	133.25	-33.77		160.7	197.36	-18.58
Add: Other un-allcoable		0	0	–		-124.62	0	–		0	0	–
PBIT Margin(%)
Phamaceuticals		20.42	21.78	-136.25		20.75	20.94	-18.47		19.25	15.18	406.91
New Ventures		-18.36	-46.11	2,775.46		-23.34	-39.49	1,615.24		-45.59	-90.63	4,503.55
PBT	100	1,054.11	1,021.47	3.2	100	3,045.44	2,746.33	10.89	100	3,290.06	2,178.18	51.05

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