The company preponed the disclosure of its financials by three days after the numbers were leaked on social media.

The YK Hamied-backed company reported consolidated net profit of ₹1,055.90 crore for the December quarter, a 31.82% rise over the corresponding quarter of last year, as per regulatory filings. Revenue during the quarter was up 13.66% YoY to ₹6,603.81 crore.

The result was in line with Bloomberg’s poll of analysts tracking the company. Analysts expected the company to post revenue of ₹6,522 crore and profit of ₹1,058 crore.

Earnings before interest, taxes, depreciation, and amortization (Ebitda) during the quarter under review grew 24.9% YoY to ₹1,720 crore with an Ebitda margin of 26.3%. The company had a net cash position of ₹7,143 crore as of 31 December after the repayment of a ZAR 720 million ( ₹312 crore) loan in South Africa. Its total debt was at ₹449 crore at the end of the December quarter.

“Our focus continues on expansion in chronic therapies, growing big brands, global wellness as well as developing our R&D pipeline in respiratory and peptides,” said Umang Vohra, Cipla’s MD and Global CEO.

The company had to reschedule its board meeting to approve financial statements originally slated for Thursday after parts of its financial results were found on social media.

Earlier, it had issued a cautionary statement clarifying that these results were yet to undergo the necessary review and approval processes.

The company mainstay pharmaceutical segment reported a revenue of ₹6,365.06 crore, up 13.88% y-o-y. Meanwhile, the new ventures segment reported a top line of ₹280.51, which was down 10.16% y-o-y.

The One India business grew by 12% y-o-y across branded prescription, trade generics, and consumer health. The branded prescription business grew at 10% driven by key therapies in the chronic portfolio as the share of chronic grew by 115 bps y-o-y to 60.3% in the quarter. The company said its theme of ‘Big Brands Bigger’ continued with 20 brands with over ₹100 crore revenue.

One India’s trade generic business focused on consolidating its growth y-o-y. through execution, positive traction in new introductions, and deepening the distribution network. The quarterly performance of Cipla’s health franchise saw y-o-y growth led by core brands which continue to track over ₹100 crore sales in the trailing 12 months, the company said.

“Our South Africa business further extended its momentum from last quarter by growing at 15% in local currency terms driven by strong execution across prescription, OTC, and tender,” Vohra added. “In North America, we continue to scale newer peaks by posting the highest ever quarterly revenue yet again at $230 million, supported by positive traction in key assets and base business.”

Its research and development (R&D) investments rose 10% y-o-y to ₹400 crore (6.1% of sales), driven by product filings and developmental efforts, it added.

“India growth has bounced back, with the market growing at 9% y-o-y in Q3 (as per AIOCD), but we expect our coverage companies to grow faster at 10% and can fetch revenue of ₹ 206 billion. Price hikes, new launches, and acquisitions are likely to be the main growth drivers, while volume growth for the industry had bounced back in December 2023,” said Abdulkader Puranwala, Analyst at ICICI Securities Limited. “Aggregate US sales of our coverage universe may scale up to $ 2.5 billion, up 12% y-o-y. Lesser price erosion in base business and improved supplies, coupled with a seasonally strong quarter, may drive growth. While the tailwinds in the US may be short-lived, the initial signs of volume revival in the domestic market are encouraging.”

Furthermore, during the third quarter Cipla (EU) Limited, its wholly owned subsidiary acquired an additional stake of 15.10% in its subsidiary, Cipla Maroc SA, from its non-controlling interest for a consideration of MAD 81.1 million.

“During the quarter, Meditab Holdings Limited, a wholly owned step-down subsidiary, bought back 16,911,765 ordinary shares from Meditab Specialities Limited, another wholly owned subsidiary, for a consideration of $23 million,” Cipla added.

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Published: 22 Jan 2024, 10:18 PM IST