Cipla posts 24% YoY net profit growth in Q1FY22 led by core therapies, COVID portfolio

India business that includes branded formulations, trade generics and consumer health grew by 68% YoY to Rs 2,710 crore, driven by volume growth in core therapies and support from existing and new introduction in COVID portfolio through the second wave. In addition, acute and respiratory nebulization recovered well for the company.

India business contributes 50 percent of Cipla's overall revenues.

Trade generics business reported healthy order flow across regions benefiting from strong demand tailwinds across core portfolio and COVID ancillary products.

Cipla, which is a market leader in respiratory therapeutic segment with 24 percent market share, grew 14 percent versus market growth of 4 percent.

The North America business that constitutes about 19 percent of revenues grew 2 percent YoY to Rs 1,038 crore led by continued market share expansion in overall Albuterol market.

The South Africa, Sub-Saharan Africa and Global Access (SAGA) division grew 10 percent YoY to Rs 837 crore. The API business rose 64 percent to Rs 302 crore led by one-time profit share on the commercial supply of an API to a partner. Contribution from international markets (emerging markets and Europe) declined 16 percent to Rs 582 crore.

Cipla said it was working with USFDA on Goa plant observations and infrastructure for virtual audit in place.

The R&D investments stood at Rs 264 crore.

“I am pleased to see the robust demand led traction in core therapies across our branded markets and continued cost control leading to 27 percent revenue growth and 24.5 percent EBITDA margin for the quarter. In
India, we maintained our market beating performance as core therapies responded to demand triggers along with support from covid portfolio during the second wave," said Umang Vohra, MD and Global CEO, Cipla.