Cipla Q3 PAT falls 2.6% YoY to Rs 729 cr

Cipla reported a 2.6% decline in consolidated net profit to Rs 729 crore in Q3 FY22 from Rs 748 crore posted in Q3 FY21.

The drug maker's total revenue from operations grew by 6% year on year to Rs 5,479 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax grew by 3.2% to Rs 1,054 crore in Q3 FY22 over same period last year.

Consolidated EBITDA fell 3% to Rs 1,243 crore in Q3 FY22 from Rs 1,281 crore posted in the same quarter last year. EBITDA margin declined to 22.7% in Q3 FY22 from 24.8% in Q3 FY21.

The company's overall India business grew by 13% year on year to Rs 2,518 crore led by sustained momentum across core therapies and traction in flagship brands; modest contribution from covid portfolio. The branded prescription business continued the market beating growth for the third consecutive quarter in FY22 driven by sustained traction across therapies in core portfolio; modest contribution from covid portfolio. Trade generics business witnessed strong demand across regions leading to high traction across flagship brands and key therapeutic categories. Meanwhile, Consumer health business witnessed robust traction in anchor brands & transitioned brands

South Africa, Sub Saharan Africa and Global Access business grew 16% year on year in ZAR terms and maintained market beating trajectory in secondary terms; tender business performed in-line with expectations. The company witnessed healthy order flow across regions.

In North America business, the company saw robust momentum in core formulation with a 7% year on year in USD terms. Cipla witnessed strong traction in respiratory portfolio with YoY growth of 36% in USD terms.

Meanwhile, R&D investments stood at Rs 262 crore in quarter ended December 2021.

Umang Vohra, MD and Global CEO of Cipla said, I am pleased to see the strong launch and commercial momentum across our core markets during the quarter. Our portfolio execution in branded markets of India & South Africa and strong respiratory traction driving our US generic franchise to a multi-quarter high quarter were key drivers. The unlocking of our first 505(b)(2) peptide asset, lanreotide injection is an important step in strengthening our complex generics engine, inching up our US footprint. Our EBITDA margins for the quarter came in at 22.7% and given the YTD traction, we are well placed to close the year in-line with our guidance of 22%. We continue our efforts to improve patient access for therapies including covid products and ensuring adequate supply across all our markets.

The company's cash and cash equivalents were at Rs 4,148 crore as on 31 December 2021 as against Rs 3,802 crore as on 30 September 2021. Cipla said growth in operating profitability and prudent working capital management drove continued healthy net cash positive position at December 2021.

Shares of Cipla were trading 1.41% lower at Rs 891.35 on BSE.

Cipla is a global pharmaceutical company focused in India, South Africa, North America, and key regulated and emerging markets. Its strengths lies in the respiratory, anti-retroviral, urology, cardiology, anti-infective and CNS segments.

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