Cipla's PAT Jumps By 45% YoY To Rs 996 Cr In Q1FY24

Cipla Limited, the Indian pharmaceutical major headquartered in Mumbai has reported its earnings for the quarter that ended on 30 June 2023, the Indian pharma giant has registered a rise of 18 per cent in its consolidated revenue to be recorded at Rs 6,465 crores in the Quarter One of Financial Year 2024 (Q1FY24) up from Rs 5,478 crores in the corresponding quarter last year. 

The pharmaceutical company’s net profit also jumped by a whopping 45 per cent year on year (YoY) in Q1FY24, the company recorded a net profit of Rs 996 crores in the June quarter. The company saw an increase of Rs 310 crores from the earnings of the same quarter last year which stood at Rs 686 crores.

The pharma major's EBITDA saw a 30.7 per cent rise in year-on-year (YoY) growth, recorded at Rs 1,494 crore against Rs 1,143 crore reported in the corresponding quarter last year.

India & US Business

The company's one India business registered growth across branded prescription, trade generics and consumer health over the last year, resulting in a 12 per cent YoY growth. Whereas the company's US business also reported its highest-ever revenue of USD 222 million and a 43 per cent YoY growth driven by robust momentum in its differentiated portfolio.

Speaking to BW Healthcare World on the top performers in this quarter Umang Vohra, MD, Cipla Limited said that most of the company's products such as lenalidomide (Revlimid), lanreotide and several others have increased their shares or have grown quarter on quarter except for Albuterol. "In the US the growth has been well diversified, there were some new launches which have helped and I believe we have seen an increase in the mix of the channels we service and the products we are launching," Vohra said.

In India too Vohra said all the therapies between respiratory and cardiac have taken a leap except the acute therapies due to the season starting late this year. Going forward Cipla is looking to do inorganic investments in India said the MD, adding that the company will analyse the deals on affordability and value and whether the company is able to win the deals. 

Highlighting Cipla's current track record on such deals Vohra said, "We have won some and we have also lost some to the competition but we are on the lookout to inorganically grow our India business."  

R&D & Future Outlook

R&D investments stand at Rs 349 crores or 5.5 per cent of sales; higher by 27 per cent YoY which the company said is driven by the continued progress of clinical trials on key pipeline assets and other developmental efforts.

Speaking on the R&D expenditure going forward, Vohra said that Cipla will stick to its previous range of spending 5-6 per cent of its sales on research in FY24. "We do want to increase the number of products that we have put into the R&D engine but we are not a company that will go after multiple number of products instead we will go for a lesser number of products which are chunkier and that fade longer over a period of time."

Highlighting the future outlook Vohra pointed out that Cipla's core operating profitability continues to be strong at 23.6 per cent expanding by 230 bps over last year. "We are excited to continue working towards establishing a strong foundation for growth in upcoming quarters, where we look forward to continuing the leadership in Chronic Therapies in Branded Prescription business in India, further expanding our differentiated pipeline in the US and targeting to be the biggest prescription business in South Africa,” he added.