 "Cipla")
Mumbai-headquartered drug major Cipla posted a 79.1 per cent year-on-year (Y-o-Y) increase in profit after tax (PAT) during the fourth quarter of FY24, reaching Rs 939.04 crore. The company also posted a 7.4 per cent increase in its consolidated revenue from operations, which came in at Rs 6,163.24 crore. This increase in PAT can be attributed to a rise in revenue for India, South Africa, and North America.
On a sequential basis, the company exhibited an 11.06 per cent decline in PAT, along with a revenue decrease of 6.67 per cent. The Ebitda (earnings before interest, tax, depreciation, and amortisation) rose 13 per cent Y-o-Y, reaching Rs 1,316 crore.
Speaking on the results, Umang Vohra, managing director (MD) and global chief executive officer (CEO), Cipla, stated, “In FY24, our revenues crossed the threshold of Rs 25,000 crore, while operating margins significantly improved to cross Rs 6,000 crore for the very first time, growing a healthy 14 per cent on topline and 26 per cent on profitability Y-o-Y. This was backed by One-India revenue breaching Rs 10,000 crore, North America revenue surpassing $900 million, and South Africa reaching the top spot in the prescription market, with all three businesses growing in double digits over last year with improved profitability. As we enter FY25, our focus will be on our priorities of market-leading growth in our key markets, growing big brands bigger, investing in future pipelines as well as focusing on resolutions on the regulatory front.”
For the full year of FY24, Cipla posted a 13.24 per cent Y-o-Y increase in revenue and a 47.10 per cent increase in PAT, reaching Rs 6,229 crore and Rs 616 crore, respectively. The Ebitda was up by 26 per cent, reaching Rs 6,233 crore.
Speaking on future partnerships, Vohra said, "Cipla remains open to partnerships for the marketing of weight-loss drugs in India. Our collaboration with Eli Lilly has been highly valued, and we believe such partnerships align with the idea of overseeing insulin."
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"We are approaching the anticipated re-inspection in Goa, given that nearly two years have passed since the last inspection and citation in August. In Indore, our remediation efforts are 80-90 per cent complete, and we intend to invite the FDA for an inspection once this process is finalised. Meanwhile, significant progress has been made in transferring assets from both these plants to our facilities in the US and abroad," Vohra further added.
For this quarter, in India, growth stands at 7 per cent Y-o-Y, driven by a strong performance in branded prescription and trade generics. The branded prescription business growth was driven by the chronic portfolio, which saw a 10 per cent increase. The share of chronic products in the overall portfolio also improved, reaching 61 per cent. This growth was mainly fuelled by key therapies in respiratory and cardiac, each recording a 10 per cent increase. The trade generics segment also grew due to the expansion of distribution networks in Tier-2 to Tier-6 cities and the introduction of over 40 new products. However, the consumer business has been affected by subdued seasonal demand.
In this quarter, North America revenue reached $226 million, marking an 11 per cent Y-o-Y increase and surpassing the $900 million threshold for the first time annually. This growth was supported by the sustained expansion of key differentiated assets alongside the base portfolio.
In South Africa, the private market segment witnessed a 26 per cent Y-o-Y increase in local currency terms. This growth was attributed to strong positions in key therapeutic areas such as respiratory, central nervous system (CNS), and anti-infectives. The integration of Actor Pharma in the over-the-counter (OTC) segment has positioned Cipla as the fastest-growing among the top five players, and Cipla aims to secure second place in the near future.
Vohra added, “As for our expectations regarding quarterly sales in the US market, we have established a baseline level for our business, which typically hovered around $215 million in most quarters last year. We anticipate that future sales will be influenced by product launches and potential market share gains on key assets. While we aim for sales to surpass previous quarters, this will depend on the success of these launches and other market factors.”
In India, Cipla entered a marketing and distribution partnership with Sanofi to expand the reach of its CNS portfolio. In consumer wellness, Cipla acquired the cosmetic and personal care business of Ivia Beaute, which includes its flagship brand, Astaberry.
