Cipla Ltd Q2 FY25 net profit jumped over 15 percent on-year to Rs 1,303 crore, beating Street expectations by a wide margin. A Moneycontrol poll of brokerages had pegged the drugmaker's second quarter net profit to grow just 5 percent to Rs 1,215 crore.
Consolidated revenue from operations rose 6 percent from a year ago to highest ever in a single quarter at Rs 7,051 crore, slightly higher than the poll estimate of Rs 6,996 crore. The company said the revenue growth was 9 percent, and net profit growth was 17 percent ex-QCIL which was divested in Q3 FY24.
Cipla share price remained under pressure, still trading in red. It was down 2 percent at Rs 1,473 on NSE, after the results announcement.
The company said it achieved its highest-ever EBITDA margin of 26.7 percent, driven by operational efficiencies and an improved product mix. Cipla’s domestic branded prescription business saw growth in key chronic therapies, particularly in the respiratory, cardiac, and urology segments, which outpaced market expansion despite a slower-than-usual season impacting its acute category.
Meanwhile, the consumer health segment surged with a robust 21 percent growth year-on-year, led by top-performing products like Nicotex, Omnigel, and Cipladine.
Internationally, Cipla's North America business posted quarterly revenue of $237 million, up 4 percent year-on-year, supported by traction in its differentiated portfolio. In South Africa, Cipla registered strong growth of 22 percent, bolstered by private market sales, with its prescription business securing the number one spot in the region.
Emerging markets and Europe also delivered a solid 18 percent growth in revenue, driven by a deep market focus across both direct-to-market and business-to-business channels.
Cipla invested Rs 385 crore in R&D this quarter, representing 5.5 percent of its sales, with spending focused on new product filings and development. Cipla’s net cash position stood at Rs 7,950 crore, with debt primarily comprising lease liabilities and working capital needs.
Cipla's MD and Global CEO, Umang Vohra, said the earnings growth was driven by mix and other operational efficiencies. “Our One-India business was impacted during the quarter due to changed seasonal pattern, however key chronic therapies in the branded prescription business continued to grow faster than the market,” said Vohra.
“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,” Vohra added.
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