Q4FY22 Preview: Cipla: Revenue seen at Rs52,586 million, adjusted PAT at Rs5,891 million

9 May 2022 , 12:26 PM

Result date: 10^th May, 2022
Recommendation: Buy
Target price: Rs1,130

Cipla’s domestic formulation revenue is estimated to grow 16.3% over the year ago period, while its US business could grow 11.5% in the March 2022 quarter.

Its US business could benefit from steady ramp-up in Albuterol/Brovana and launch of Lanreotide. The company’s market share in the overall Albuterol market has expanded by ~160 basis points from 16% to 17.6% on a sequential basis. In Brovana, steady ramp-up in market share continued during March 2022 quarter. Cipla has captured ~34% market share versus ~30% in the December 2021 quarter.

According to IU data, Cipla launched Lanreotide 505(b)(2) depot injectable product in Feb-22 and has captured ~3% MS in the first month of launch itself.

Surging input costs and seasonal factors could impact the EBITDA margins sequentially. However, as compared to the year-ago quarter, EBITDA margin could expand 246 basis points to 19.7%.
Profit After Tax (PAT) could grow 42% over the year-ago quarter.

Important management insights to watch out for:
·         Demand outlook in key markets
·         Pipeline of new launches
·         Update on trends in input cost movement and pricing actions

Rs Million	March 2022 estimates	YoY change	QoQ change
Revenue	52,586	14%	(4)%
EBITDA	10,381	30%	(16)%
Adjusted Profit After Tax	5,891	42%	(19)%

Source: IIFL Research