Cipla reports 32% y-o-y growth in net profit to Rs 1,056 crore; stock climbs to new 52-week

23 Jan 2024 , 10:14 AM

Cipla, a prominent pharmaceutical player, announced a 31.8% year-on-year (YoY) increase in its December quarter consolidated earnings to Rs 1,056 crore on Monday, above Street predictions. It was Rs 801 crore a year ago.

Its sales for the quarter increased 13.7% YoY to Rs 6,604 crore, up from Rs 5,810 crore in the same period previous year. However, the drugmaker's sales fell somewhat from the previous quarter's Rs 6,678 crore. Meanwhile, EBITDA increased by 24.2% YoY to Rs 1,748 crore in the December quarter of FY24.

The North American business reached a new high with quarterly sales of $230 million, an 18% YoY increase, aided by continued progress in key assets, healthy demand in base business, and some year-end buying.

Umang Vohra, the Managing Director and Global CEO of Cipla, stated that the company achieved remarkable top-line growth of 14% year-on-year for the quarter. Additionally, robust EBITDA margins of 26.3% were maintained. The business in India experienced a commendable 12% year-on-year growth, driven by strong performances in Branded Prescription, Trade Generics, and Consumer Health segments.

Cipla's expansion in South Africa continues, with a robust 15% YoY rise in sales in local currency terms. Positive traction in prescription, over-the-counter, and tender helped to sustain this performance.

Cipla's R&D spending totaled Rs 400 crore, or 6.1% of revenues, up 10% year on year, owing to product registrations and development initiatives.

At around 10.11 AM, Cipla was trading 7.22% higher at Rs 1,411.25 per piece, against the previous close of Rs 1,316.25 on NSE. The counter rose to a new 52-week high of Rs 1,412.50.

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