Cipla's Q1 FY24 Earnings Propel Share Price Up 8%

27 Jul 2023 , 01:07 PM

Cipla’s share price surged over 8% in early trade on Thursday following the announcement of robust Q1 FY24 earnings. The pharmaceutical company reported a consolidated net profit of Rs 995.7 crore, showing a remarkable 45.1% increase compared to the corresponding quarter of the previous year.

Cipla’s revenue for the quarter ending June 2023 rose by 17.7% to Rs 6,328.9 crore, driven by strong performance in India, the United States, and South Africa. The company’s US business achieved its highest-ever revenue of $222 million, registering an impressive 43% YoY growth, driven by strong momentum in differentiated portfolios.

Cipla raised its EBITDA margin guidance for FY24 to 23%, up from the previous estimate of 22%, reflecting confidence in near-term generics pricing in the US market.

The North America (NA) base business quarterly run-rate guidance was also raised to $210-215 million from the earlier projection of $195 million.

The positive financial results and market confidence indicate Cipla’s continued growth trajectory and make its shares an attractive proposition for potential investors and traders.

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