Cipla Ltd reported on 26 July that its Q1 FY25 net profit rose 18.3 percent on-year to Rs 1,178 crore, beating analyst estimates. The drugmaker's April-June revenue from operations rose 7 percent on-year to Rs 6,694 crore.
A Moneycontrol poll of 9 brokerage estimates had pegged Cipla's fiscal first quarter net profit at Rs 1,116 crore and revenue at Rs 6,788 crore.
The company, in a statement, attributed the robust earnings show to strong performance across focussed markets with 154 basis points improvement in its EBITDA margin (earnings before interest, tax, depreciation and amortisation).
Cipla's EBITDA for the first quarter jumped as much as 14 percent on-year to Rs 1,716 crore. The EBITDA margin expanded to 25.6 percent in the April-June quarter from 24.1 percent in the same quarter a year ago.
“Our One-India business continued on its growth trajectory during the quarter, led by branded prescription which grew at 10 percent. Our concentrated focus and execution in differentiated portfolio have further strengthened the US business which yet again posted all-time high quarterly revenue at $250 million. In South Africa, we recorded a solid growth of 19 percent YoY in local currency terms, led by private market.
Going ahead, focus will be on growing our key markets, further building our flagship brands, investing in future pipeline as well as
focusing on resolutions on the regulatory front,” said Umang Vohra, MD and Global CEO, Cipla Ltd.
Key highlights of Q1FY25
-One-India: India branded prescription business grew at a healthy rate of 10 percent YoY. Overall One India growth was offset by softness in trade generics business owing to distribution model change
-North America: All-time high revenue at $250 million up by 13 percent YoY supported by traction in differentiated portfolio
-South Africa: Momentum continues with revenue growth at 19 percent in local currency terms
-R&D investments stand at Rs 353 crore or 5.3 percent of sales, higher by 1 percent YoY driven by product filings and developmental efforts
-Net cash position of Rs 8,449 crore; debt primarily includes lease liabilities and working capital requirements
-Compliance update: Patalganga and Kurkumbh facilities were classified as ‘VAI’ by USFDA
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