Cipla, India’s 3rd largest pharma and drug-making company, declared its Q4FY22 results on 10th May 2022. The company posted a consolidated profit of Rs. 362 crores, down 12.4% year on year (Y-o-Y) from Rs. 413 crores. It posted a profit of Rs. 729 crores in the previous quarter.
The revenues from operations were recorded at Rs. 5,260 crores, up ~14% yearly, from Rs. 4,606 crores but down 4% Q-o-Q. EBITDA was recorded at Rs. 763 crores, down 4.2% year on year (Y-o-Y) basis from Rs. 796 crores. Rise in employee cost, inventory and other reasons were quoted as the reasons behind the decline of revenue on a quarterly basis.
For the Indian business, Cipla reported a robust 21% YoY revenue growth , up 15% yearly. Business in the SAGA (South Africa, Sub-Saharan Africa and Cipla Global Access) region rose 8% yearly in USD terms. US/North America business reported an impressive $160 million in revenue, up 17% YoY growth based on strong traction in respiratory assets as well as contribution from peptide assets. R&D investments stood at Rs. 322 crores, up by 16% yearly.
The drug giant declared a dividend of Rs. 5 per equity share for FY 21-22. Cipla traded at Rs. 926.15, down 1.29% on 10th May when the markets closed.
Umang Vohra, MD and Global CEO, Cipla Ltd, said, “I am pleased to see the continued momentum across our key markets despite adverse seasonality impacting overall business mix. Our One-India business continued the double-digit trajectory during the quarter. We crossed the $1Bn milestone in our domestic branded prescription business driven by sustained growth across our acute and chronic portfolio. Our established respiratory franchise and contribution from peptide assets have strengthened our US run rate to $160Mn. Adjusting for covid linked and other one-time charges, our core operating profitability continues to be strong, underpinned by the strength of our business fundamentals. We continue to respond to the challenging input cost environment with cost optimization and mix management while maintaining high serviceability. We are excited about the upcoming complex launches in H2FY23, which will further strengthen the overall business and profitability trajectory.”
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Research Analyst: Bavadharini KS