Cipla Q4 FY22 results
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.
Highlights
- Revenue from operations came at Rs. 5,260 crores, up 14% yearly.
- For Q4FY22, the revenue from the Indian segment grew 21%, SAGA 8%, and US 17%, respectively, depicting a health growth pattern across
- A dividend of Rs. 5 per share (at face value of Rs.2) was declared
- R&D investments grew 16% to Rs. 322 crores
Segment-wise revenue
- Pharmaceuticals – Revenue was up 14% to Rs. 5,175.95 crores, from Rs. 4,543.6 crores on a YoY basis.
- New ventures – Revenue stood at Rs. 110.5 crores, up 18% from Rs. 93.6 crores on a YoY basis
Misses
- Consolidated net profit came in at Rs. 362, down ~ 50% sequentially and 12.4% yearly
- EBITDA for the quarter dropped 4%, to Rs. 763 crores from Rs. 796 crores.
What did the management say
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.”
Other things to know about Cipla
- Cipla inks pact with Genes2Me to launch COVID-19 RT PCR test kit
- Cipla wins the prestigious Frost & Sullivan and TERI’s Sustainability 4.0 Award 2021 as “Challenger in Mega Large Business Pharma Sector”
- Cipla acquires stake in Clean Max Auriga Power LLP; progresses towards championing its ESG agenda
- Cipla ranked as one of the most sustainable healthcare companies in the Dow Jones Sustainability Emerging Markets Index
- Eli Lilly and Cipla enter into a strategic partnership in India to enhance access to Lilly’s key diabetes products
- Cipla and Kemwell Biopharma announce the execution of a joint venture agreement for developing, manufacturing and commercialising biosimilars
- Cipla launches ‘ViraGen’, a polymerase chain reaction (Covid-19 RT-PCR) test
- Cipla celebrates 85 years with the launch of its book ‘Caring For Life: The Cipla Story Since 1935’
- Cipla currently sits on a market capitalization of Rs.74,642 crores and is one of India’s leading drug manufacturers.
- Cipla’s P/E ratio stood at 29.1 against the industry average of ~33, whereas its P/B ratio was recorded at Rs.241
Its ROCE and ROE stood at 17.6% and 14.1%, respectively - Stock 3-year and 5-year CAGR stood at 19% and 11%, respectively
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Research Analyst: Bavadharini KS