Cipla Limited, on July 29, reported a 4 percent decline in its consolidated net profit at Rs 686 crore for the first quarter of FY22-23 as against a profit of Rs 715 crore recorded a year ago. During the year ago period, there was an exceptional expense item for Rs 124.6 crore, adjusting for which the profit in the previous quarter would have been Rs 839 crore.
On a sequential basis, the profit has increased by 89.6 percent from Rs 362 crore earned during the January - March period. During the previous quarter, the company had an exceptional expense of Rs 57.5, adjusting for which the PAT would have been Rs 419.6 crore.
Consolidated revenues for the pharmaceutical major dipped 2.3 percent on-year to Rs 5,375 crore as compared to a revenue of Rs 5,504 crore registered in the year-ago quarter. On a sequential basis, the revenue is higher by 2.2 percent from the revenue of Rs 5,260 crore recorded in the previous quarter.
“I am pleased to see the sustained momentum across our key segments with strong secondary growth across geographies as the core portfolio momentum in One-India business continues to be robust driven by strong demand levers”, said Umang Vohra, Managing Director & Global CEO, while commenting on the performance for the quarter. “Our US run rate continues to witness consistent traction in respiratory, complex generics and peptide portfolio and we are closely tracking upcoming complex launches in H2FY23”.
Regional performance
The company witnessed strong traction in its India and US businesses while the quarter was a subdued one for its business in SAGA (South Africa, Sub-Saharan Africa and Global Access) region.
Its branded subscription business in India continued the momentum across therapies in core portfolios that was driven by pricing and new product launches. Continued channel engagements helped the company witness robust traction across its trade generics business while its consumer health portfolio had strong response to its anchor brands as well as transitioned brands.
The North America region registered revenues of $155 million with a year on year growth of 10 percent, driven by its core formulation business with growth in its respiratory and peptides portfolio.
The SAGA region could not keep face with the growth in other geographies as it witnessed a decline of 10 percent on year in USD terms. The performance of the region was impacted by muted growth in private primary sales, however strong traction was witnessed in the tender business which helped the overall business.
The forex volatility in emerging markets and muted B2B growth in Europe offset the strong double digit growth in secondary terms.
The API business continued the traction with global seedings and lockins.
Margins
“Our cost rigor and calibrated pricing actions have helped offset inflationary cost elements, insulate margins while maintaining high serviceability”, Vohra added.
EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter dipped 15 percent on year to Rs 1,143 crore while on a sequential basis, it was an improvement of 50 percent. However, the previous quarter (January – March) EBITDA included a one-time COVID inventory and other charges.
The company reported operating profitability of 21.3 percent which is well within its full year guidance of 21-22 percent range but on a YoY basis, the margins are down 318 bps.
The net margins however, were down 22 bps on year to 12.8 percent due to higher other income and slightly lower tax expenses.
Cipla closed Rs 9.95 higher at Rs 977.4 on July 29 at the National Stock Exchange. The stock has generated returns of 10 percent during the past one year and has gained 3 percent during the past one month.
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