Cipla Q3(FY22) Results
Cipla, one of the leading drug makers in the country, posted its quarterly earnings with its PAT for the quarter remaining largely flat on a YoY basis. The PAT, however, saw a marginal increase of 0.6% YoY to Rs 756.8 crore from Rs 751.6 crore in the year ago period. On a sequential basis, the PAT jumped 6.6% from Rs 709 crore in Q2 FY22. This was primarily due to a sharp incline in Cipla’s other income. It saw an increase of 51% QoQ to Rs 91 crore from Rs 60 crore in the previous quarter.
The company’s revenue from operations grew by around 6% YoY to Rs 5,478 crore from Rs 5,168 crore. The company also reported a one-time income from a litigation settlement.
Cipla’s total income increased by 6% to Rs 5,570 crore from Rs 5,255 crore. However, the total income growth on a sequential basis remained flat. The flat numbers were largely due to a decline in the domestic sales despite the U.S, South Africa, and Rest of the World (RoW) markets doing well during the quarter.
Hits
- PAT up 0.6% YoY, 6.6% QoQ to Rs 756.8 crore in the quarter under review
- Other income up 51% to Rs 91 crore from Rs 60 crore in the previous quarter
- EBITDA up 1.4% QoQ to Rs 1,243 crore from Rs 1,226 crore in the previous quarter
- Revenue from operations up 6% YoY to Rs 5,478 crore from Rs 5,168 crore in Q3 FY21
- India business up by 13% YoY, 6% QoQ to Rs 2,518 crore in the quarter under review
Misses
- Revenue from operations fell by 0.7% from Rs 5,519 crore
- Total income remained largely flat on a sequential basis
- EBITDA down by 3% YoY to Rs 1,243 crore from Rs 1,281 crore in the year ago period
Segment-wise revenue
Pharmaceuticals: Revenue up by 5.3% YoY to Rs 5,377 crore from Rs 5,102 crore in Q3 FY21
New ventures: Revenue up by 39% YoY to Rs 127 crore from Rs 91 crore in Q3 FY21
What the management says
Cipla MD & Global CEO Umang Vohra 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. 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%.”
Other things to know about Cipla
Cipla expanded its peptide portfolio with the Lanreotide injection 505 getting FDA approval.
The company’s R&D investments stand at Rs 262 crore
Cipla Ltd is the third-largest drug maker in India with a market capitalization of Rs 71,000+ crore as of January 25, 2022.
The company’s P/E ratio is at 29.93 against the industry average of 36.52 while its P/B ratio is at 3.87 against the industry average of 4.86 as of January 25, 2022.
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