Cipla Q2 Results: Revenue increases by 15% as profit soars 43% YoY at Rs 1,131 crore

30 Oct 2023 , 10:19 AM

Pharma giant Cipla beat market predictions on Friday by revealing a 43.35% YoY increase in its September quarter consolidated earnings, which came to Rs 1,130.91 crore. Its sales are above the market expectation of Rs 6,523 crore by 14.57% YoY to Rs 6,678.15 crore, marking the company’s greatest quarterly topline ever.

Additionally, the earnings exceeded analysts’ projections of Rs 1,006 crore in an ET Now survey. Cipla’s consolidated margin increased to 26% in the quarter, up 33% YoY. Cipla shares increased by up to 4% to reach the day’s high of Rs 1,196.85 after the results beat.

‘One-India’s business expanded at a robust rate year over year, continuing to outperform the market in both the Trade Generics and branded prescription segments. Strong performance in both OTC and prescription markets propelled double-digit growth in the private market business in South Africa. The pipeline is moving along nicely, with significant milestones reached in the respiratory and peptide assets, according to Cipla MD and Global CEO Umang Vohra. The North American business scaled up to $229 million, growing 28% YoY, driven by strong traction across core products with share expansion in differentiated assets.

Cipla maintained its market-beating performance in the branded prescription business, with 11% growth in the chronic portfolio powered by important treatments. To reach 60%, the chronic share improved by 140 bps YoY.

With quarterly revenue of $229 million, a 28% YoY rise, the North American business reached a new height and recorded its 14th consecutive quarter of YoY growth.

Due to growth in OTC and prescription business, Cipla’s private market business in South Africa expanded at a rate of 12% YoY in ZAR terms. Additionally, its 10% growth rate exceeded that of the market, which grew at a rate of 4%.

Cipla’s R&D investments at the end of the September quarter were Rs 379 crore, or 5.7% of revenues, up 13% YoY due to the ongoing advancement of clinical trials on important pipeline products.

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