Cipla Ltd, one of India’s largest pharmaceutical companies, on January 25 reported a consolidated profit after tax (PAT) of Rs 729 crore for the third quarter ended December 2021, down by 2.6 percent from Rs 748 crore reported in the year-ago period.
The company registered a PAT of Rs 711 crore in the previous quarter.
Consolidated revenues for the Mumbai-based company stood at Rs 5,479 crore, up by 6 percent compared to Rs 5,169 crore reported in the corresponding quarter of the previous year. The company's revenue in the September quarter was at Rs 5,520 crore.
The strong performance in the overseas markets of the US, South Africa and the Rest of the World (RoW) was overshadowed by the decline in domestic business.The drop in coronavirus cases during the third quarter in India led to lower contribution from anti-infective and other COVID-related drugs, affecting sales.
“Robust momentum across key markets; Strong traction in OneIndia and US business drive Q3FY22 performance”, said the management of the company while commenting on the performance for the quarter.
The revenues from One India business grew by 13 percent on year to Rs 2,518 crore compared to Rs 2,231 crore in the same period a year ago.
Branded Prescription Business
“The branded prescription business in India delivered market-beating growth for the 3rd consecutive quarter in FY22”, said the management.
Sustained traction was witnessed across branded & generic markets however, the contribution from Covid related products was modest, it added.
The company stands at the number 3 position in the overall Indian pharmaceuticals market with a market share of 5.3 percent. It holds the number 2 position in the Chronic segments with a 7.9 percent market share. It is the top pharma company in the Respiratory and Urology segments with 22.6 percent and 14.4 percent market share respectively. In Cardiac medicine, it is at number 5 ranking with a 5.3 percent share.
Trade Generic Business
The company launched 3 new brands in this segment during this quarter taking the total number of brands launched in the past nine months to 10.
According to the management, “There was strong demand across regions leading to high traction across flagship brands and key therapeutic categories”. The company continues to focus on customer engagement for healthy order flows in this business segment.
Consumer health business
“The business achieved breakeven in the first half of this financial year and since then it has been on track for sustainable EBITDA (earnings before interest, tax, depreciation and amortization)”, the management said about the performance of this business.
SAGA (South Africa, Sub-Saharan Africa and Cipla Global Access)
The private market business in South Africa grew 16 percent on-year in Zar terms while the tender business' performance was in-line with rest of the market.
The company said that it saw healthy orders across the sub-Saharan region while the global access tender business also performed well.
Overall sales in the region fell 2 percent on-year to Rs. 892 crore while the South Africa business grew 8 percent on-year.
North American operations
The North American business of the drugmaker performed well in the quarter aided by the sales of drugs like albuterol and arformoterol. Cipla said its core formulations business in the region maintained robust growth momentum as sales grew 7 percent on-year in US dollar terms.
The operating show of the company in the reported quarter was disappointing as consolidated operating revenues declined 3 percent on-year to Rs. 1,243 crore.
The drugmaker's margins in the quarter shrank 210 basis points on-year to 22.7 percent. "We are well placed to close the year in-line with our guidance of 22%," Global Chief Executive Officer Umang Vohra said.The stock ended over 1 percent higher at Rs 904 on the BSE . The stock has generated returns of 6.3 percent in the past year but has remained flat over the past one month.