Cipla posts 7% year-on-year rise in Q2 PAT, riding on 10% revenue growth

Sequentially, however, the company has posted muted growth-revenue growth of 0.3%, and a PAT decline of 0.5%. Ebitda dipped sequentially too, by 9%

Mumbai-based Cipla, which has a wide portfolio of Covid-19 drugs, posted a 7 per cent year-on-year (YoY) rise in profit after tax (PAT) in the second quarter of the fiscal riding on 10 per cent YoY growth in revenues.

Cipla posted a PAT of Rs 711 crore, and revenue from operations of Rs 5,520 crore during the quarter. The Ebitda came in at Rs 1,226 crore, up 4 per cent YoY, with a resulting Ebitda margin of 22.2 per cent.

Umang Vohra MD and Global CEO, Cipla said that ‘strong momentum’ continued in core therapies across its branded markets, offsetting price erosion and normalizing Covid distribution.

“In India, we continue to drive strong performance led by sustained volume traction despite a high FY21 base. Our collaboration with Eli Lilly for their diabetes products helps us further strengthen our endeavour of creating access to innovative medicines in-line with the One-India strategy,” he said.

On a sequential basis, however, the company has posted muted growth–revenue growth of 0.3 per cent, and a PAT decline of 0.5 per cent. The Ebitda dipped sequentially too by 9 per cent.

The first quarter of the fiscal was the period when the second wave of Covid-19 was raging through the country. Sales of Covid-19 drugs were high during the first quarter, which have seen a dip during the second quarter as cases are low.

In fact, analysts had expected a decline in Covid-19 revenues for Cipla. Nomura analysts had noted that the company had benefited from higher demand for OTC drugs (example sanitisers). “We had estimated Covid-19-related sales at Rs 700-800 crore in Q1FY22 (25-30 per cent of India revenues). We factor in 4 per cent growth YoY and a 20 per cent decline in sales QoQ,” Nomura analysts had noted recently.

Overall, during the second quarter, Cipla’s India revenue has grown by 16 per cent YoY, while its North America business clocked a 2 per cent YoY growth. India accounts for 44 percent of Cipla’s revenues. “In Albuterol, Cipla’s TRx market share stood at 18.2 percent of the generic market and 14.6 percent for the overall market as per IQVIA week ending 8 th October 2021,” Cipla said about its US business.

The company’s API business has seen a YoY fall of 9 percent and QoQ dip of 43 per cent.

API business had a high base last year as many global clients were stocking up on inventory during a logistics issue during the pandemic.